HI3042 Taxation Law Assignment doc

Added on - Nov 2019

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
1TAXATION LAWTable of ContentsAnswer to Question 1.1:.............................................................................................................2Issue:..........................................................................................................................................2Rule:...........................................................................................................................................2Application:................................................................................................................................2Conclusion:................................................................................................................................3Answer to question 1.2:..............................................................................................................3Issue:..........................................................................................................................................3Rule:...........................................................................................................................................3Application:................................................................................................................................3Conclusion:................................................................................................................................4Answer to question 1.3:..............................................................................................................4Issue:..........................................................................................................................................4Rule:...........................................................................................................................................4Application:................................................................................................................................4Conclusion:................................................................................................................................5Answer to question 1.4:..............................................................................................................5Issue:..........................................................................................................................................5Rule:...........................................................................................................................................6Applications:..............................................................................................................................6Conclusion:................................................................................................................................6
2TAXATION LAWAnswer to question 2:.................................................................................................................7Issue:..........................................................................................................................................7Rule:...........................................................................................................................................7Applications:..............................................................................................................................7Conclusion:................................................................................................................................9Answer to question 3:.................................................................................................................9Answer to question 4:...............................................................................................................11Reference List:.........................................................................................................................13
3TAXATION LAWAnswer to Question 1.1:Issue:The current issue highlight the cost that is incurred in respect of the cost that isincurred in moving the machine to a new site.Rule:I.“Section 8-1 of the ITAA 1997”Application:A taxpayer is usually allowed to claim for the allowable deductions that are incurredby them under“Section 8-1 of the ITAA 1997”(Anderson, Dickfos and Brown 2016). Inconsideration with the“Section 8-1 of the ITAA”expense that is occurred in moving themachine will only be considered for deductions given the machinery is put into use forearning income that is taxable. As evident from the present situation no allowable deductionswill be available for moving the machine to the new site because moving the machineinvolves increase in the value of the asset.As bought forward in“British Insulated & Helsby Cables”the cost incurred intransport provides evidence that is an constant advantage for the business by shifting thedepreciable asset. The“Taxation ruling of TD 92/126”brings forward that the installing themachine and starting the business functions where a cost is regarded as the portion of revenue(Barkoczy 2016). It can be asserted that cost that has been occurred in moving the machine tonew site would be treated as the cost of capital and will not permitted for claimingdeductions.
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