Tutorial 9. Please send me answers for these question which are attached.Thanks BLO2206 Taxation Law
Tutorial Questions
Semester 1 - 2016
TUTORIAL 9
GENERAL DEDUCTIONS
1
Why was the expense allowed in
FCT v Finn
(1961) 106 CLR 60 but not fully
in
FCT v Hatchett
71 ATC 4148?
How does this approach demonstrate the
operation of section 8-1?
2
Joseph worked for a large IT company developing software.
At the end of a
financial year he was called in by his employer and told he was being made
redundant.
He was however advised to set up a company and his services would
be utilized through the company as and when required.
He thus set up JIT Pty
Ltd, as a consulting IT business.
Much of his work is for his previous employer.
The business is run from his residential premises in a room set up especially for
the conduct of the business.
The company pays government rates and insurances on the premises, and
contributes toward the heating and lighting costs of the premises from which it
operates.
In the first year of operation the company claims these expenses as a
tax deduction. As well, Joseph claims his travel from the company’s premises to
consulting jobs and back as a deduction.
Explain the correctness of the company and Joseph in deducting these expenses.
3
What is the effect of the following transactions on the tax position of ABC Pty
Ltd.
You can assume all transactions occurred in the current financial year.
Transaction
$ Amount involved
Purchased new motor vehicle on 1 July
62,000
Purchased trading stock
30,000
Revalued land and offices on site from which business
run
70,000
Acquired land to expand factory
120,000
Sold case of wine in November, purchased for
$24,000 as an investment in February 1990.
56,000
Made allowance for annual leave to be paid to staff for
Christmas leave
12,000
Provided new motor vehicle to Managing Director,
estimated to travel 20,000 kilometres per year.
Same vehicle
mentioned above.
Gave to each staff member one piece of furniture
valued at no more than $200.
9,400
Received fully franked dividend.
60,000
Specific Deductions
1`
For the tax year ended 30 June 2013 Paul Berger, who is a self-employed
physiotherapist, incurred the following expenses on his professional rooms,
which he had acquired in July 2003:
This question was answered on: Sep 21, 2023
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