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Taxation Law Question and Solutions

Added on - 26 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:.................................................................................................................2Answer to requirement 1:...........................................................................................................2Issue:..........................................................................................................................................2Rule:...........................................................................................................................................2Applications:..............................................................................................................................2Conclusion:................................................................................................................................3Answer to requirement 2:...........................................................................................................3Issue:..........................................................................................................................................3Rule:...........................................................................................................................................3Applications:..............................................................................................................................3Conclusion:................................................................................................................................4Answer to requirement 3:...........................................................................................................4Issue:..........................................................................................................................................4Rule:...........................................................................................................................................4Applications:..............................................................................................................................4Conclusion:................................................................................................................................5Answer to requirement d:...........................................................................................................5Issues:.........................................................................................................................................5Rule:...........................................................................................................................................5Applications:..............................................................................................................................5
2TAXATION LAWConclusion:................................................................................................................................6Answer to question 2:.................................................................................................................6Issue:..........................................................................................................................................6Rule:...........................................................................................................................................7Applications:..............................................................................................................................7Conclusion:................................................................................................................................9Answer to question 3:.................................................................................................................9Answer to question 4................................................................................................................11Reference List:.........................................................................................................................13
3TAXATION LAWAnswer to question 1:Answer to requirement 1:Issue:This issue is concerned with the deductibility of the expenditure from the assessableincome of any loss or outgoings incurred by the tax payers.Rule:a.Section 8-1 of the ITAA 1997”b.“British Insulated &Helsby Cables v. Atherton (1926)”Applications:“Section 8-1 of the ITAA 1997”defines that an individual taxpayer cannot deductexpenditure or outgoings that it is a loss or in the form of outgoings of capital or havingcapital nature or the loss or outgoings comprises of the private in nature (Barkoczyet al.2016). As evident from the current scenario it is found that the taxpayer has incurredexpenditure on relocating the machine to the new site represents an outgoing of capital innature. Therefore, according to the provision of the“Section 8-1 of the ITAA 1997”costincurred in relocating the machine is prevented from being considered as deductibleexpenditure (Coleman and Sadiq 2013).As held in the case of“British Insulated and Helsby Cables Ltd v. Atherton(1926)”any outgoings that that is occurred in the process of transportation is characterized asthe continuous advantage to the depreciable asset (Harriset al.2013). As defined under the“taxation ruling of IT 2197”cost involved in moving the machine to the new site for the
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