Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Answer to question 1:............................................................................................................. 2
Answer to question 2:............................................................................................................. 7
References:.......................................................................................................................... 13

2TAXATION LAW
Answer to question 1:
Description Impact on taxable income Reasoning
Net exempted income and
non-assessable non-exempt
income
Less: $100,000 and $50,000 The sum of $100,000 is an
Exempted income under the
“section 6-20” 1and it is not
included for assessment.
While the amount of
$50,000 as the non-
exempted non-assessable
income is not considered for
tax treatment2. However, it
is not held as exempted
income while computing or
deducting tax loss under the
division 36.
Depreciation Less: $30,000 It is an expenses that is
charged to the profit. It is not
occurred because it is
associated to the
expenditure that is
considered as capital in
nature. However, the
provision relating to capital
allowances may be
applicable.
Bad debt Less: $20,000 Under section “25-35 (1A),
of the ITAA 1997” the bad
debt will be considered
deductible because it is
occurred in the financial
year3. The taxpayer has
1 “section 6-20”
2 Woellner, Robin, et al. "Australian Taxation Law 2016." OUP Catalogue (2016).
3 Barkoczy, Stephen. "Foundations of taxation law 2016." OUP Catalogue (2016).

3TAXATION LAW
written off the expenses
from the creditor that was
unable to pay from last year
and it is understood that the
company accounts for the
taxable income on accrual
receipts4.
Long service leave paid Less: $10,000 With respect to “section
26-10 of the ITAA 1997”,
taxpayer can claim
deduction for annual leave
or long service leave if the
4 “25-35 (1A), of the ITAA 1997”