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Income tax Assessment Act

   

Added on  2020-04-07

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Running head: TAXATION LAWTaxation LawName of the Student:Name of the University:Author’s Note:Course ID:
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1TAXATION LAWTable of ContentsAnswer to Question 1:................................................................................................................2Answer to Question 2:................................................................................................................2Answer to Question 3:................................................................................................................5Answer to Question 4:................................................................................................................7References:...............................................................................................................................10
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2TAXATION LAWAnswer to Question 1:In compliance with the “Section 4-15 of the Income tax Assessment Act 1997”, thecalculation of taxable income is carried out by subtracting allowable expenses fromassessable income. Deduction could be claimed on the part of the taxpayer as laid out in“section 8-1(1) of the ITAA 1997” for the expenses spent on gaining assessable income andconducting the overall business activities (Lavermicocca and McKerchar 2013). Hence, thefollowing points are taken into consideration:According to Section 8-1, the amount spent for shifting machinery would be deductedonly, in case; the same is utilised for making taxable income. For instance, the casesof “Smith v Westinghouse Brake Company(1888)” and “Granite SupplyAssociation Ltd vKitton(1905)” state that the expenses spent for plant reallocationand other expenses would not be subtracted because of capital nature.“Section 8-1 of ITAA 1997” depicts that the revaluation cost associated with an assetis not taken into account as deductible expenditure (Bell and Hindmoor 2014).“Section 8-1 of ITAA 1997” denotes that an expense pertaining to lawful dealings issuffered to contrast the winding up of the firm, which would be treated as deductibleexpense.According to “Section 8-1 of ITAA 1997”, in case of experience of any solicitorexpense, it would be treated as permissible deduction for making business income(Saad 2014). Answer to Question 2:In case of any purchase in the context of an organisation, GST input credit is acceptedonly on keeping proper records of the documents associated with such transactions.
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