Taxation's Law

Running head: TAXATION’S LAW
TAXATION’S LAW
Name of Student
Name of University
Author’s Note
Course ID

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TAXATION’S LAW
Table of Contents
Answer to Question 1:.....................................................................................................................2
Answer to Question 2:...................................................................................................................10
References:....................................................................................................................................17

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TAXATION’S LAW
Answer to Question 1:
DESCRIPTION IMPACT ON TAXABLE
INCOME
REASONING
Net exempted income and
non-exempt and non-
assessable Income
Less: $100,000 and $50,000 The amount $100,000 is the
part of the exempted income
which is under “section 6-20”
and it is termed to be non-
assessable. As per above
mentioned state the $50,000 is
also considered as the non-
assessable income and it cannot
treated under the tax1. By
division 36, it is not considered
as the exempted income when the
treatment of tax loss carried on.
This will not be considered in
deducting of tax loss.
Depreciation Less: $30,000 This expenses which incurred
by the taxpayer is charged
over profit2. It does not have
1 Barkoczy, Stephen, Foundations Of Taxation Law 2014
2 Grange, Janet, Geralyn A Jover-Ledesma and Gary L Maydew. Principles Of Business
Taxation 2014.

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TAXATION’S LAW
any kind of effect on the
expenditure which is seen as
the capital and it is capital in
nature. The applicable
provision will be relating to

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TAXATION’S LAW
the capital allowances.
Bad Debt Less:$20,000 As per stated in the section
“25-35 (1A), of the ITAA
1997”bad debt is liable for the
deduction as it is the part of the
financial year3. From the
3 Krever, Richard E, Australian Taxation Law Cases 2015

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calculation it can be understood
that the company’s taxable
income on accrual receipts. It is
seen that the taxpayer has deduct
the expenses that was not paid by
the creditor from the last year.
Long Service Leave Paid Less:$10,000 As per stated in the “section
26-10 of the ITAA 1997”,
taxpayer is liable to claim
deduction on the annual leave