Taxation law | Sample Assignment

Added on - Nov 2019

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Running head: TAXATION LAWTaxation lawName of the studentName of the universityAuthor note
1TAXATION LAW
2TAXATION LAWQuestion 1a.Moving cost of machinery to the new sitesThe moving cost related to the fixed asset to a new site from one site will be treated asthe capital expenditure and the amount will not be an allowable deduction under ITAA 97,Section 8-11. However, the expenses will increase the item’s cost for the depreciationpurpose.b.Cost of revaluing the asset for effecting the insurance coverFor the allowable deduction, it must be taken into consideration the fact that whetherexpenses increases the capacity of earning the income or the expenditure are carried out topreserve or protect the asset. If it is incurred just for protecting the asset, then the benefit willbe regarded as of temporary nature2. However, if the expenses are of recurring nature, it willbe allowed for deduction under under ITAA 97, Section 8-1.c.Legal expenses for opposing the winding-up petitionIf the stated case is related to doing the operation process of the business, as seems inthe given case, then the expenses will be regarded as revenue expenditure and will be allowedfor deduction.d.Legal cost incurred for the service of a solicitor1Buchanan, Richard, and Edward Consett. "Section 974-80 ITAA97: The current state of play."TaxSpecialist19.5 (2016): 217.2Fisher, Donna. "Mid market focus: No joy regarding FBT on travel expenses for FIFOarrangements."Taxation in Australia49.7 (2015): 377.
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