Taxation Law ITAA 1997 Assignment


Added on  2020-04-07

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Running head: TAXATION THEORY, PRACTICE AND LAWUTILIZATION OF TAXATION LAWName of the student:Name of the University:Authors Note:

1TAXATION LAWAnswer to question 1:Capital gains or a loss that are derived from the sale of assets is the main issues thatcrop up in this case. Here the law sections which are applicable are Section 108-20 of theITAA 1997 and Section 108-10 of ITAA 1997.Among the above mentioned law sections, section 108-20 of the ITAA 1997 showsthat loss of $1000 that is incurred during the deal that took place i.e., the sale of home soundsystem cannot be approved to be considered as set off, this law mainly states that no lossescan be considered that is incurred from the disposal of used assets. The law section 108-10 ofthe ITAA 1997, states that losses incurred cannot be set off that is associated with thecommon gains in the shape of sales of shares (Van der Velde, 2014). The offset can also beconsidered according to law section 108-10 of ITTA 1997. In this case Eric has gained profitfrom disposed assets and this cannot be considered as current year capital. Here Eric’s gainproportion amounts to $15000. Thus the main point here is, Eric cannot offset losses since he

2TAXATION LAWobtained profit from the disposal of assetsAnswer to question 2: Issue that highlights in this case is mainly concerned with the ascertainment of FBTand this is in accordance with the “Taxation Ruling of TR 93/6”. Thus the law that isapplicable here is the Taxation ruling of TR 93/6.Computation of Fringe Benefit TaxLaw section under taxation rulings of TR 93/6 states that economic institutions makestrategies for offsetting the account that is related to loan activities and these strategiesundertaken are often refereed as interest offset agreement. Here the products are restructured

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