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TAXATION LAW 1 TAXATION LAW UTILIZATION Name of the University Author

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Added on  2020-03-28

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Taxation LAW UTILIZATION OF TAXATION LAW 1 TAXATION LAW UTILIZATION OF 1997. Name of the Student Name of the University Authors Note Question 1 2 part 1: 2 part 2: 2 part 3: 3 part 4: 3 Question 2: 4 References: 6 Question 1 part 1: Moving machinery to new site incurs cost and the issue in this regard is whether this cost is deducted or not , this issue falls under section 8-1 of ITAA 1997.

TAXATION LAW 1 TAXATION LAW UTILIZATION Name of the University Author

   Added on 2020-03-28

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Running head: TAXATION LAWTAXATION LAW UTILIZATIONName of the StudentName of the UniversityAuthors Note
TAXATION LAW 1 TAXATION LAW UTILIZATION Name of the University Author_1
1UTILIZATION OF TAXATION LAWTable of ContentsQuestion 1..................................................................................................................................2part 1:.....................................................................................................................................2part 2:.....................................................................................................................................2part 3:.....................................................................................................................................3part 4:.....................................................................................................................................3Question 2:.................................................................................................................................4References:.................................................................................................................................6
TAXATION LAW 1 TAXATION LAW UTILIZATION Name of the University Author_2
2UTILIZATION OF TAXATION LAWQuestion 1part 1: Moving machinery to new site incurs cost and the issue in this regard is whether thiscost is deducted or not , this issue falls under section 8-1 of ITAA 1997. Another law sectioncan also be used in this case which is British Insulated & Helsby Cables. Moving machineryto a new site involves incorporation of cost thus depreciation process incurs cost. This cost isnot allowed as acceptable deduction according to law section 8-1 of the Income taxassessment act 1997. The main reason of not accepting this deduction is , this cost is incurredwhile carrying out business operations and thus it is regarded as business expense. This is thecase under law section 8-1 of ITAA 1997. Now the second law section which is applicable inthis case is the British Insulated & Helsby Cables. According to this law the cost that isimposed due to movement of machinery from one place to another is a transport cost but thiscost is regarded as a cost that is bared for reaping benefit and this is done by depreciatingassets which is a business related activity. In agreement with Taxation rule of TD 93/126 ,setting machinery for the purpose of business is the incidence of cost which is treated asrevenue. Thus it can be concluded that no form of acceptable deductions will be legalizedunder law section 8-1 of ITTA 1997.part 2: Revaluation of capital that affects cover of insurance is considered as acceptablededuction under law section 8-1 of ITTA 1997, this issue evolved in this case. Situation hereshows that spending have connection with the fixed asset, thus while determining thededuction it is essential to find whether expenses that is incurred while revaluating revenueproduction holds while shielding the asset. Now while shielding the assets provides benefitthen it will be considered as acceptable deduction under section 8-1 of the Income Tax
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