Analysis Of Deductible Expenses Under Section 8-1 Of The ITAA 1997
- December 27, 2023/ Uncategorized
Answer to question 1:
Answer to requirement 1:
Issue:
The main issue has been taken into consideration based on the several types of the depiction which has been able to state on the number of the issues related to the deductions allowable as per “section 8-1 of the ITAA 1997” (Dimasi 2013).
Legislations:
- “Section 8-1 of the Income Tax Assessment Act 1997”
- “British Insulated & Helsby Cables”
Applications:
The main application of the cost has been seen to be based on the locating of the new site representing the allowable deductions and is seen to be allowed as per “section 8-1 of the Income Tax Assessment Act 1997”. The depreciation consideration has been further seen to be taken into consideration as per the various types of consideration based on cost of the asset. The cost has further occurred with the small changes and this shall be further allowed as per the different types of the consideration which has been taken with the small changes and the same needs to be allowed for the deductions under “section 8-1 of the Income Tax Assessment Act 1997”. The important consideration of this has been based on the expenditures allowable for the deductions which have resulted on day-to-day operations of the business (Australian Government 2015).
Based on the verdict passed by the discerned case “British Insulated & Helsby Cables”, the main cost has been based on the transportation with an incessant benefit arrived with the various types of the business related premise by the shift of the depreciable asset. This has been further with the compliance of the various types of the other aspects of the business requirements in compliance to “Taxation Ruling of TD 93/126” as per the commencement of the business and cost involved with the machine, which will be treated as a new revenue. As determined from the present understanding the various types of cost associated to locating new machine in the new site and capital cost needs to be considered as per the non-permissible deductions (Hosking 2016).
Conclusion:
The main cost is seen to be related to moving of the machine to the new site in moving of asset in terms of the capital expenditure. Based on this purview there have been no allowable deductions which has been permitted as per “section 8-1 of the Income Tax Assessment Act 1997”.
Issue:
The main scenario has been considered with the revaluation to assess on the effect on the cover of the insurance which will be permissible as per “section 8-1 of the Income Tax Assessment Act 1997”.
Legislation:
- “Section 8-1 of the Income Tax Assessment Act 1997”
Application:
The consideration of the present situation has been considered as per the present situation which has been seen with the association of the fixed asset. It has been further seen to be based on the deductions which is necessary to be determined as per the expenses occurred in the revaluation acquired with increasing revenue in producing the capacity which has merely seen with protecting the asset (Australian Taxation Office 2015). The various types of the results depicted in the latter on stages has been further able to determine the needs to be treated as per “section 8-1 of the Income Tax Assessment Act 1997”. As per the present situation analysis, the cost consideration has been based on the revaluation of the asset which has been based in effect of the insurance covered and allowable as per the deduction based on “section 8-1” as the expenses are mostly repetitive in nature (Doran et al. 2013).
Answer to requirement 1:
Conclusion:
It needs to be further concluded that the different types of considerations for the insurance cover needs to be treated with the deduction made as per “section 8-1 of the ITAA 1997”.
Issue:
The given situation as brought forward number issues which is seen to be based on the various types of the depiction made in the study which has been able state on the different types the consideration which has been made with “section 8-1 of the ITAA 1997” (Whait 2014).
Legislation:
- “Section 8-1 of the Income Tax Assessment Act 1997”
- “FC of T v Snowden and Wilson Pty Ltd (1958) 99 CLR 431)”
Application:
The given case has been seen to be applicable as per “section 8-1 of the Income Tax Assessment Act 1997” and the same has been considered as per the winding up of the operations and hence it cannot be considered for the deduction. As per the “taxation ruling of ID 2004/367”, the various types of the legal cost needs to be comprised with eh different types of the consideration for carrying put the business operations (Brown et al. 2017).
As per “FC of T v Snowden and Wilson Pty Ltd (1958)”, the different types of the expenses needs to be considered as per the various types of the considerations made with the necessary lawful actions which can qualify for the deductible spending.
The expense of the legal fees is varying during the winding of the petition and these are allowed for deductions as per the capital nature characteristics and business operation.
Conclusion:
Based on the given scenario it has been evaluated that the different types of the considerations made of the case study made with non-permissible deduction made with the “section 8-1 of the ITAA 1997”.
Issue:
The present consideration has been able to determine whether the legal expenditure considered with services of solicitor and the deductions with regards to this has been considered as per “section 8-1 of the ITAA 1997”.
Legislation:
- “section 8-1 of the Income Tax Assessment Act 1997”
Application:
The main form of the application has been seen to be discerned based on “section 8-1 of the Income Tax Assessment Act 1997”. Based on these rulings, the legal expense is seen to be take place as per the business functions which need to be produced with the revenue and the same needs to be treated as per the assessable deductions. Despite of this, it needs to be further depicted that the different types of the consideration taken based on the legal expenses needs to symbolized capital, private and domestic nature and seen with the non-chargeable non-exempt and exempt chargeable proceeds (Piketty and Saez 2013).
Based on the legal fees the allowed with the individuals incurring legal fees and these may not be treated as per the allowable deduction of the taxable income. The given case has been seen to be established with the association of the chargeable income based on the deductions allowed in “8-1 of the ITAA 1997”.
Conclusion:
The legal expenditure has taken place in terms of the business operations and the same needs to be included for the deductions with “section 8-1 of the ITAA 1997”.
Issue:
The given situation has considered the determination of the input tax credit taken with the advertising expenditure and the same has been referred with GSTR Act 1999.
Conclusion:
Legislation:
- “GST Act 1999”
- “paragraphs 11-5 and 15-5”
- “subsection 15-25”
- “Goods and Service taxation ruling of GSTR 2006/3”
- “Ronpibon Tin NL v. FC of T”
Application:
Based on the taxation rulings of GSTR 2006/3 provided along with the guidance related to the implementation input tax and credit as per the administration for changes in relation to the financial supplies as per the tax “GST Act 1999”. The creditable reason and the actual application with the ruling under “division 11,15 and 129 of the GST Act”. This ruling is usually applicable as per the taxable components registered as necessary to make the financial supplies with the reduced input tax credit (Sharkey and Murray 2016).
The present situation of Big bank has been considered with the expense of $1,650,000, inclusive of the GST and advertisement. This has been seen in respect of the present situation of Big Bank based on the taxation ruling of the Goods and Services as per “GSTR 2006/3”. The different types of the rulings of the entity are further seen to be registered with the obtained registration and the GST payable to the taxable supplies. The various scheme of the GST of the given entity needs to claim input tax credit considered for the GST including the supplies acquired during the import or export process of the entity. In case an individual goes past the financial acquisition, they are not seen to be entitled to recover the GST charged with the recovered amount of the company (Besley and Persson 2013).
As per the case of “Ronpibon Tin NL v. FC of T” the main consideration has been seen with the “doctrine of extent and to the extent” which is applicable in analysing the GST legislation. The main form of the obligations for this has been further seen to be comprised on the appropriate adoption method and practical circumstances. This has been further seen to be defined as per “paragraph 11-5 and 15-5”, which is required for the creditable acquisition partly or on entire basis (SMAILES and MCDERMOTT 2013).
The various types of the requirements of the paragraphs 11-5 and 15-5 (a) has been taken into consideration as per the creditable importation for the creditable rationale. The acquisition is seen to be partially creditable to ascertain the creditable purpose degree. As per “subsection 15-25” the import needs to the considered as a creditable source. In this regard “section 11-15 or 15-10” the acquisition is seen to be qualified with the creditable entity to make the supplies seen to be needed for tax claim. As per “GSTR ruling of 2006/3” Big Bank Ltd has went past the acquisition based on financial grounds. The threshold limit and the issues invoice of the Big Bank Ltd needs to be entitled for the input tax of the supplies made as per the GST (Coleman 2013).
Conclusion:
It has been discerned that Big Bank Ltd is seen to be eligible for claiming of the tax credit with regard to “GSTR 2006/13”. This amount has been further seen to be incurred as per the advertising expenditure for a creditable acquisition.
Reference List:
Australian Government (2015) ‘Australian Taxation Office’, Registerting for GST. Available at: https://www.ato.gov.au/Business/GST/Registering-for-GST/.
Australian Taxation Office (2015) Yearly reports and returns | Australian Taxation Office, Yearly reports and returns. Available at: https://www.ato.gov.au/Business/Yearly-reports-and-returns/.
Besley, T. and Persson, T. (2013) ‘Taxation and Development’, Handbook of Public Economics, 5, pp. 51–110. doi: 10.1016/B978-0-444-53759-1.00002-9.
Brown, V., Moodie, M., Cobiac, L., Mantilla Herrera, A. M. and Carter, R. (2017) ‘Obesity-related health impacts of fuel excise taxation- an evidence review and cost-effectiveness study’, BMC Public Health, 17(1), p. 359. doi: 10.1186/s12889-017-4271-2.
Coleman, D. Y. (2013) ‘Taxation.’, Kenya Country Review, pp. 121–122. Available at: https://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,uid&db=buh&AN=87855587&site=ehost-live&scope=site.
Dimasi, B. (2013) Doing Business in Australia-Introduction to the Australian taxation system for New Zealand businesses, Ernst & Young Australia. Available at: https://www.google.com/url?sa=t&rct=j&q=&edata-src=s&source=web&cd=1&ved=0ahUKEwif4vCDl8TJAhXCspQKHTLGDmwQFggdMAA&url=https%3A%2F%2Fwww.nzica.com%2F~%2Fmedia%2FNZICA%2FDocs%2FResources%2520and%2520publications%2F2013%2520Doing%2520Business%2520in%2520Australia.
Doran, C. M., Byrnes, J. M., Cobiac, L. J., Vandenberg, B. and Vos, T. (2013) ‘Estimated impacts of alternative Australian alcohol taxation structures on consumption, public health and government revenues’, Medical Journal of Australia, 199(9), pp. 619–622. doi: 10.5694/mja13.10605.
Hosking, A. (2016) ‘Australian Taxation Office adds voice authentication to its app’, Biometric Technology Today. doi: 10.1016/S0969-4765(16)30038-8.
Piketty, T. and Saez, E. (2013) ‘Optimal labor income taxation’, Handbook of Public Economics, 5, pp. 392–474. doi: 10.1016/B978-0-444-53759-1.00007-8.
Sharkey, N. and Murray, I. (2016) ‘Reinventing administrative leadership in Australian taxation: Beware the fine balance of social psychological and rule of law principles’, Australian Tax Forum, 31(1), pp. 63–97.
SMAILES, A. and MCDERMOTT, P. M. (2013) ‘The Uniformity Of Taxation Penalties In Australia.’, Monash University Law Review, 39(1), pp. 213–245. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=90278272&lang=es&site=ehost-live.
Whait, R. B. (2014) ‘Exploring innovations in tax administration: A Foucauldian perspective on the history of the Australian Taxation Office’s compliance model’, eJournal of Tax Research, 12(1), pp. 130–161.
