Taxation Laws Report - DOC

Added on - 06 Jun 2020

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Taxation Laws
Table of ContentsQuestion 1........................................................................................................................................1Introduction............................................................................................................................1Critical Analysis.....................................................................................................................1Supporting Evidences.............................................................................................................2Conclusion..............................................................................................................................3Question 2........................................................................................................................................3Critical Analysis.....................................................................................................................3Supporting Evidences.............................................................................................................4Conclusion..............................................................................................................................4Question 3........................................................................................................................................4Q.4..........................................................................................................................................7Conclusion.......................................................................................................................................7References........................................................................................................................................8Books and Journals.................................................................................................................8
Question 1.IntroductionITAA 1997 expanded as Income Tax Act 1997 made by the Parliament of Australia.Through it income tax can be calculated and was taken from Income Tax Assessment Act 1936and in this new amendments was done in year 1997. Section 8-1 of this act details about thedeductions for expenses included in getting assessable income. Section 25-5 shows taxdeductibility of overheads on managing tax affairs. It is not related to above provision as thisexpenditure does not have to do with producing income1. Stock or the shares information isdescribed from the Section 70-40 which highlights the buying and selling of the shares. There arealso other provisions like Section 104-5, 104-145 and 116-30. There can be deductions from thethe assessable income which has been gained for the aim of gaining net income. In the sameprovision there should be a business activity. No losses can be deducted if it is of the capitalnature or domestic nature. On the other hand if the losses are incurred during gaining some sortof income. All the losses which can be deducted in the whole section will be refereed to asgeneral deduction.Critical AnalysisIn the situation given where cost of moving to a new site is a expense which is done forthe business purpose so that they can get better business environment thus increasing their profitmargins. According to this they have to look at the deductions as mentioned in the Section 8-1 ofITAA 1997. Cost of moving fixed assets from one site to another can be called as expenses & nodeduction are available under Section 8-1 of ITAA 1997. In this case expenses can increase thecost of the item for purposes of depreciation2.On the other hand in the case of cost of revaluing assets to effect insurance cover theexpenses are related to fixed assets. In determining deductibility it is relevant whether theexpenses enhance or enlarge income earning capacity or are faced just to protect it. If the end and1Woellner, R and et. al., 2011.Australian Taxation Law Select: legislation andcommentary. CCH Australia.2Olatunji, O. A., 2011. A preliminary review on the legal implications of BIM and modelownership.Journal of Information Technology in Construction (Itcon).16(40). pp.687-696.1
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