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Taxation Law Assignment: Taxation Ruling 92/2

   

Added on  2020-05-28

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
Taxation Law Assignment: Taxation Ruling 92/2_1
TAXATION LAW1Executive Summary:The current study is based on the understanding of the Taxation Ruling 92/2 relating to taxincentives provided to the listed companies. The ruling specifically deals with the income taxconsequences relating to the scientific research and development undertaken by the listedorganization. The ruling evidently provides that the listed companies would be provided withthe facilities of availing income tax deductions given that the research and developmentexpenditure is occurred from the approved instituted. The study will place emphasis on thenumerous sections of Income Tax Assessment Act that deals with the scientific research anddevelopment. The study will evidently put forward that to gain the benefit of tax incentivesassociated to the costs incurred on research and development listed companies are required tocomply with the provision of the ITAA. Furthermore, the study aims to create a positiveimpact on the listed companies that are availing the scientific research and developmentactivities.
Taxation Law Assignment: Taxation Ruling 92/2_2
TAXATION LAW2Table of ContentsIntroduction:...............................................................................................................................2Discussion of Ruling:.................................................................................................................2Conclusion:................................................................................................................................8Reference List:...........................................................................................................................9
Taxation Law Assignment: Taxation Ruling 92/2_3
TAXATION LAW3Introduction: The taxation ruling of 92/2 provides the explanation relating to the expenditure thatis occurred on carrying out the scientific research and the same can be considered asdeductions under subsection 73A (1) of the ITAA 1936 (Barkoczy 2016). The activities ofResearch and development enables the business and the non-profit organization to attainexcellence in the operations. The managers of the organizations usually seek to enhance theoperational effectiveness of the firm. The Research and development initiatives assist in improving the overall efficiency ofthe organization. As evident the research and development requires huge outlay and to attainthe organizational efficiency both the profit making and non-profit making firms devote theirfund in Research and development activities (Tan Braithwaite and Reinhart 2016). Theseactivities also accompanies tax incentive that are commonly known as research anddevelopment incentives. The current study places emphasis on the effects of Research anddevelopment incentives for the listed companies in Australia. Discussion of Ruling: Ever since the adoption of the section 73A during the year 1946 the taxpayers areable to put forward their claim regarding the tax deductions for the expenses that are incurredon the scientific research, which might not have, been allowed under any other provision. Thetaxation ruling of TR 92/2 is regarded as the specific ruling that governs the provision of thetax incentive relating to the activities of research and development in a firm (Snape. and DeSouza 2016). To arrive at the assessable income of an organization, section 73A of IncomeTax Assessment Act, 1936 provides the forms of scientific expenses that is occurred and thesame can be considered as an allowable deduction. Additionally, Sub-section 1 of section73A of ITAA, 1936 lay down that expenses on scientific research and development will be
Taxation Law Assignment: Taxation Ruling 92/2_4

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