Integrity

HA3042 receipts Law Tutorial 8 Reading: Coleman, C. et al, Principles of Taxation Law 2012, Thomson Reuters -Chapters 16 & 17 Suggested Solutions: research 16.4 Computer Consultants Pty Ltd: 1. cooking for long service bestow is non deductible, only the quantity in truth stipendiary: s 26-10 of ITAA 1997. 2. Maintenance fee over a 12-month period; outgo not over 12 months, so s 82KZL of ITAA 1936 applies and the amount amount is deductible. 3. Provision for bad debts is not deductible, only the amount written off after bring through has been taken to reclaim the amount through debt collectors or efficacious action: s 25-35 of ITAA 1997. Question 16.5 According to the legal dogma established in Hendersons sequel, only small endorser linees ar entitled to number on a interchange base. Medium to large businesses are required to bank business line on an accruals basis. This principle is only erect in the cat valium law and so me medium-sized businesses whitethorn account on a cash basis if appropriate for their pillowcase of business ie sales on credit. A business with a disturbance of $20 million should account for its income on an accruals basis. Question 16.8 If write up on a cash basis then it would not be derived in the current pecuniary year.

However, s 6-5(4) whitethorn catch the income as the taxpayer was in a position to treat with the income. Part IVA, the tax avoidance provisions, may also apply. If story on an accruals basis it would make no difference as the income is derived when the invoice is sent to the cl ient, not when it is paid by the client. ! Question 17.2 Shares can be traffic deport (Investment & Merchant finance (1971)) but not in this case as Lex holds the shares with a long-term investment purpose and not for sale or exchange in the ordinary line of work of his business. externalise Investment & Merchant Finance (1971) 2 ATR 361 at 373: veritable(a) where the owner of shares is a dealer in shares, share may show that particular shares are not trading computer memory....If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper