Taxation Law Assignment: Income Tax and Business Expenses

This assignment solution addresses Taxation Law, specifically focusing on income tax calculations and business deductions related to a partnership. The solution references the ITAA 1997 and explores allowable business deductions for various expenses, including interest on loans, travel expenses, office building renewal fees, debt collection, employee salaries, and bad debts. The assignment references legal and academic sources to support the analysis. The solution provides a breakdown of the relevant sections of the ITAA 1997 and demonstrates how these sections apply to specific business scenarios. The assignment provides a comprehensive overview of the key principles of taxation law in relation to business operations and provides a reference list of sources used to create the solution.

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
Reference list:.............................................................................................................................4

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Answer to question 1:
Computations of Net Income from Partnership
Assumptions:
a. The amount of sales made will be liable for assessment under section 6-5 of the ITAA
1997 (Woellner et al. 2016).
b. An interest expense on loan has been incurred which shall be considered to be
allowable business deductions under section 8-1 of the ITAA 1997

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c. A travelling expense was incurred by Johnny which will be allowed as deductions
under section 8-1 of the ITAA 1997 (Mellor 2016).
d. Office building renewal fees and cost incurred for documentation are considered to be
business expenses. Therefore, under 8-1 of the ITAA 1997 they will be liable for
allowable business deductions (Pinto 2013).
e. Expenses on debt collection, salary of employees and council will be regarded for
allowable business deductions under the purview of the 8-1 of the ITAA 1997.
f. Bad debt represents a business loss and the same shall be accounted for allowable
income tax related deductions under 8-1 of the ITAA 1997 (Blakelock and King
2017).

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Reference list:
Blakelock, S. and King, P., 2017. Taxation law: The advance of ATO data
matching. Proctor, The, 37(6), p.18.
Mellor, P.W., 2016. A Model for a State Income Tax in Australia: Historical Considerations,
Key Design Issues and Recommendations (Doctoral dissertation, Monash University).
Pinto, D., 2013. State taxes. In Australian Taxation Law (pp. 1763-1762). CCH Australia
Limited.
Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2016. Australian Taxation
Law 2016. OUP Catalogue.