StudentShare solutions
Triangle menu

Taxation Law Assignment - Essay Example

Nobody downloaded yet

Extract of sample
Taxation Law Assignment

However, this section also puts a discretionary element into the ATO's or the Judge's determination because the expenditure has to be necessary to the actual capital gain, which brings into question the validity of the expenses that are preparatory in nature or for other purposes rather than the actual construction. The key point that this judgment made is that the determination of this and subsequent cases is in reference to all circumstances, which includes an examination of the taxpayer's purpose or intention in incurring the expenditure. If it is necessary to apportion a loss or outgoing, the appropriate apportionment will depend on the facts of each case. The method taken must be fair and reasonable as per the case of Ronipibon Tin NL v Tongkah Compound NL v FC of T [1949] (78 CLR 47). The expenditure to be deductible if it necessarily incurred for the particular income producing purpose in question, which can include limiting to an the income for just a particular year as per the case of Fletcher v Federal Commissioner of Taxation [1991] (173 CLR 1). In this case of the vacant land that was leased in the aforementioned ATO decision the owner did not purchase the land for leasing, rather private purposes so in the original sale there was no allowable deduction. Now the owner is using the land to bring in income, therefore the owner is allowed a deduction in the tax year that is expended up to the amount of the income earned but not exceeding this.
In the case of the swimming pool that BLW have built on the vacant land that they own they are sure to be allowed certain expenditures on the land as allowable deductions. The first thing to identify is that the improvement and expenditure outlaid is not for private purposes, because if it were the costs would not be deductible. As the purpose of the expenditure is to build a swimming pool for the community, which will cost to enter then it is classed as a business venture and therefore valid deductions are possible from the income of $60,000 from Mulga Council. It needs to be noted that the whole profit is counted as no GST was paid because in this dealing of the monies going to BLW from the council there was a tax exemption. In relation to the $660, 000 to the builder of the pool one has to consider whether this is deductible or as this is the contractual duty that BLW owed to Mulga to get the $600,000 then it is not a deductible cost because it is the work that needs to be completed to get the $60,000. Therefore under Section 8-1 of the ITAA it is not a deductible costs; however for the other costs that are mentioned they may be deductible. Also in respect to deduction and depreciation under CGT and cost bases this property fulfills the requirement, which is that the land is improved to enhance the value of the ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Taxation Law Assignment Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/298507-taxation-law-assignment
(Taxation Law Assignment Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.net/miscellaneous/298507-taxation-law-assignment.
“Taxation Law Assignment Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/miscellaneous/298507-taxation-law-assignment.
  • Cited: 0 times

Summary

1. Capital event in D (receipt of 60,000) and outlaying of pool costs is more likely to be occurred since there is a contractual obligation, therefore, the cost proceeds and cost base should be identified with regards to legislation or cases.
The construction of the swimming pool has had a series of costs and the question is whether the costs of the pool can be put against the proceeds to reduce the tax liability…
Taxation Law Assignment
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Taxation Law Assignment"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Taxation
The government gets a larger amount of tax revenues from levies on citizen’s income; investments incomes included. “The federal income tax system is prepared in a way that it automatically taxes different levels of income at specific rates, which is usually at a gradual increasing scale” (Mumford, 2010 p.
6 pages (1500 words) Essay
Taxation Law Accounting Essay
le deductions 469,500 Total taxable income for Philip Total assessable income 604,000 Total allowable deductions (469,500) Total taxable income $ 134,500 Phillip’s total assessable income (division 6) comprises of the rent he receives from his rental property, plus the earnings received from sales made at the tennis racquet business.
4 pages (1000 words) Essay
Taxation Law Essay
The following discourse is on Australian taxation laws. The focus is a case study on Stephanie. Most of the countries fund their operations from revenues collected through taxation. This tax is imposed on various activities undertaken by the citizens of the state and among the category of this source of tax is the income tax.
9 pages (2250 words) Essay
Multijurisdictional tax (Inbound taxation and Outbound taxation assignment)
Please read the fact patterns carefully and respond to John Doe with answers to each of his questions. Individual One Based on some recent investment advice Joe T. decided to invest in stock through the New York Stock Exchange. He purchased 1,000 shares of common stock in IBM Corporation1 (this represents less than 1% of the outstanding voting power and value of IBM Corporation).
12 pages (3000 words) Essay
Taxation law
Furthermore, it provides cases and other sources of law or information that may apply while taking the given situation in consideration. Keywords: Assessable income, tax position PART A The 2 cases concerned in the current situation are Federal Commissioner for Taxation v Dixon and Scott v Federal Commissioner for Taxation.
8 pages (2000 words) Essay
Taxation Law
In this paper, the rights and powers of Australian Taxation Office has been compared with that of two countries, i-e; United States and Germany the similarities and differences between them has been analysed. The main function of Australian Tax Office (ATO) is to administer legislation imposing taxes and excise (other than customs duty).
20 pages (5000 words) Essay
Taxation Law Practice
Business organizations focus upon the entities themselves (ATO, 2007). Only the federal government imposes income taxes on individuals, and this is the most important source of revenue for this level of government. The state governments do not impose any income taxes, and have not done so since World War II.
9 pages (2250 words) Essay
Australia taxation law
This website contains all forms required, legal ramifications and case law, and calculators used to complete calculations required in different portions of the tax forms (such as depreciation calculations.) The success of this case study can be measured by what tools were used to identify and calculate requirements and the computation of the final tax levied.
9 pages (2250 words) Essay
Taxation
A partnership interest depicts the partnership percentage owned by the partners, and it represents the right to make decisions regarding partnership, the profits and the liabilities involved in partnership (Glover &
3 pages (750 words) Essay
Taxation Law
This type of employment is mostly common in the media industry and with large organizations. However, the latter form of employment is more common and less complex. It simply entails one having a job indefinitely. The employment or job may be terminated at any time and
8 pages (2000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Taxation Law Assignment for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us