Taxation Law Assignment On Deductions
Added on 2020-04-07
15 Pages2700 Words49 Views
Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
1TAXATION LAWTable of ContentsAnswer to Question 1.1:.............................................................................................................3Issue:..........................................................................................................................................3Rule:...........................................................................................................................................3Application:................................................................................................................................3Conclusion:................................................................................................................................4Answer to question 1.2:..............................................................................................................4Issue:..........................................................................................................................................4Rule:...........................................................................................................................................4Application:................................................................................................................................4Answer to question 1.3:..............................................................................................................5Issue:..........................................................................................................................................5Rule:...........................................................................................................................................5Application:................................................................................................................................5Answer to question 1.4:..............................................................................................................6Issue:..........................................................................................................................................6Rule:...........................................................................................................................................6Applications:..............................................................................................................................6Conclusion:................................................................................................................................7Answer to question 2:.................................................................................................................7Issue:..........................................................................................................................................7
2TAXATION LAWRule:...........................................................................................................................................7Applications:..............................................................................................................................8Conclusion:..............................................................................................................................10Answer to question 3:...............................................................................................................10Answer to question 4:...............................................................................................................12Reference List..........................................................................................................................14
3TAXATION LAWAnswer to Question 1.1:Issue:The issues relating to the study has been seen in terms of whether the cost involvedfor moving the machine to the new site shall be considered for non-allowable or allowabledeductions.Rule:I.“Section 8-1 of the ITAA 1997”II.“Britissh Insulated & Helsby Cables”III.“Taxation ruling of TD 92/126”Application:Individual taxpayers shall be entitled for deductions in case the expenditure has beenseen to take place for the purpose of assessable income. As per “Section 8-1 of the ITAA”the different expenses relating to moving the machine is seen to represent an additionalincrease in the acid cost. Based on the present context it has been discerned that the cost ofmoving the machine in the new site shall be not entitled for the purpose of allowabledeductions. The sole reason for this is due to the fact that these non-allowable entitlementsneed to an increase in the cost of asset (Barkoczy 2016).As signified in “British Insulated & Helsby Cables” the cost involved in thetransportation signifies that there is a persistent benefit for the business by allocating thedepreciable asset in a new location. As defined in “Taxation ruling of TD 92/126”,installation of the machine and starting of the business process is viewed as a part of therevenue. Henceforth, it can be suggested that the expense incurred in carrying the machine to
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