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Australian Taxation Law : Assignment

   

Added on  2019-10-31

9 Pages1296 Words151 Views
Running head: TAXATION LAWTaxation lawName of the studentStudent IDName of the universityAuthor note

1TAXATION LAWTable of ContentsQuestion 1..................................................................................................................................2Question 2..................................................................................................................................4Question 3..................................................................................................................................5Question 4..................................................................................................................................7References..................................................................................................................................8

2TAXATION LAWQuestion 1Section 8-1 of ITAA 1997 states about the views of ATO (Australian Taxation office)regarding whether the term incurred under the ruling has same meaning with regard to thetaxpayers those file their return on income on the basis of receipt as it deals with thetaxpayers those normally file their return on earning basis1. However, the ruling is not appliedto use of the term incurred or incur in different parts of ITAA, for instance, section 25-10.To be qualified for the allowable deduction under ITAA 1997, Section 8-1, theexpenditure or loss shall have been incurred. However, for the term incurred – Any statutory definition is not thereIn a broad sense, the term is considered as incurring of an expense while the taxpayerowe an obligation that he cannot escape. However, this broader sense guide is subjectto the propositions issued by the court. Treatment of various expenses under ITAA 1997, Section 8-1 will be as follows –a.Machinery’s moving cost to new siteUnder the ITAA 1997 for section 8-1, the capital expenses are not allowed fordeduction. The expenses incurred with regard to movement of the asset to the new site willenhance the cost of the asset and will therefore be allowed for depreciation. However, as theexpense is in the nature of capital expenses, it will not be allowed for deduction purposeunder taxation ruling.1Buchanan, Richard, and Edward Consett. "Section 974-80 ITAA97: The current state of play."TaxSpecialist19.5 (2016): 217.

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