logo

BLO2206 Taxation Law Assignment- Tax Incentive

12 Pages2935 Words34 Views
   

Australian Taxation Law (BLO2206)

   

Added on  2020-05-28

BLO2206 Taxation Law Assignment- Tax Incentive

   

Australian Taxation Law (BLO2206)

   Added on 2020-05-28

ShareRelated Documents
Running head: TAXATIONTaxationName of Student:Name of the University:Authors Note:
BLO2206 Taxation Law Assignment- Tax Incentive_1
TAXATION1Executive SummaryThe report discusses the research and development tax incentive provided in Australia. It isindicated in the report that the Research and Development incentive plays an important rolefor the development of the economy and business is Australia. Many advantages arise fromthe incentive that includes increased production, economic performance improvement andothers. The main tax incentive can be classified under two categories a refundable tax offsetof 43.5% for the entities that have turnover less than $20 million. In case of all other eligibleentities 38.5% of non-refundable tax offset is allowed. It can be said that the incentive haveplayed its role in increasing the research and development activity in the business.
BLO2206 Taxation Law Assignment- Tax Incentive_2
TAXATION2Table of ContentsIntroduction................................................................................................................................3Definition of R&D:....................................................................................................................3Tax Incentives Provided:............................................................................................................4Tax implication of the incentives:..............................................................................................4Following are the provisions laid down by the tax laws:...........................................................5Relevant rules of taxation:.........................................................................................................6Conclusion:................................................................................................................................9Reference..................................................................................................................................10
BLO2206 Taxation Law Assignment- Tax Incentive_3
TAXATION3Introduction In order to keep up with the changing trends and customer demands and expectationsthe companies or business entities have to continuously look for ways to improve the qualityof their product and the method of production. In pursuance of achievement of this objectivethey indulge themselves in lot of research and development activities. Research anddevelopment activities enable the companies to stay ahead of its competitors by maintaining acompetitive edge over them. The product or method of production developed by the companythrough its research activities not only helps the company but the entire society at large. Fore.g. if a notebook company develops a way of whitening its paper without the use of harmfulchemicals like chlorine, it will not only help the company in improving its method ofproduction but also the society at large by reducing the chemical pollution (Braithwaite2017). However, these activities often involve huge costs including significant capitalexpenditures. In order to promote research and development activities by the companies thestatute has provided many tax incentives in respect of expenditure incurred on this behalf.This document deals with the various tax incentives given by the statute and the conditionsthat are required to be fulfilled in order to avail them. Definition of R&D:The activities undertaken within the ambit of research and development are verymuch of investigative nature. It is an effort to improve the quality of the existing products ofthe company or to develop some new products in order to provide the customer with betterexperience. The company through its research activities tries its level best to utilise its presentcapacity of production to deliver the best product possible (Smith et al. 2016).
BLO2206 Taxation Law Assignment- Tax Incentive_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
TAX Tax Authorization
|14
|3001
|293

Tax Implications of the Incentives
|11
|2812
|31

The Research and Development Tax Incentives
|10
|2766
|292

Assignment - Australian Taxation Law
|12
|2594
|97

R&D Tax Incentives for Small Business in Australia
|7
|2748
|110

The Implication of R&D Incentives Application to Small Business in Australia
|9
|3751
|286