CLAW3201 Final notes

Topics: Money, Tax, Expense Pages: 13 (4814 words) Published: September 14, 2014
Taxation
 law
 –
 Final
 Notes
 
General
 Deductions
 
Section
 8-­‐1(1)
 
(1)
 You
 can
 deduct
 from
 your
 assessable
 income
 any
 loss
 or
 outgoing
 to
 the
 extent
 that:
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (a)
 
 it
 is
 incurred
 in
 gaining
 or
 producing
 your
 assessable
 income;
 or
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (b)
 
 it
 is
 necessarily
 incurred
 in
 carrying
 on
 a
 *
 business
 for
 the
 purpose
 of
 gaining
 or
 
producing
 your
 assessable
 income.
 
 
(2)
 
 However,
 you
 cannot
 deduct
 a
 loss
 or
 outgoing
 under
 this
 section
 to
 the
 extent
 that:
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (a)
 
 it
 is
 a
 loss
 or
 outgoing
 of
 capital,
 or
 of
 a
 capital
 nature;
 or
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (b)
 
 it
 is
 a
 loss
 or
 outgoing
 of
 a
 private
 or
 domestic
 nature;
 or
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (c)
 
 it
 is
 incurred
 in
 relation
 to
 gaining
 or
 producing
 your
 *
 exempt
 income
 or
 your
 *
 non-­‐
assessable
 non-­‐exempt
 income;
 or
 
 
-­‐

-­‐
-­‐
-­‐

Nexus:
 
o Logical:
 is
 outgoing
 related
 to
 that
 income
 generating
 activity?
 
o Temporal:
 before,
 during
 and
 after
 
A
 deduction
 must
 be
 incurred
 
o Legal
 obligation
 to
 pay
 –
 positively
 committed
 
Apportionment;
 in
 both
 positive
 and
 negative
 limbs
 
Approach
 to
 answer
 questions
 
1. Who
 is
 the
 tax
 payer
 –
 what
 is
 the
 business
 
2. Is
 it
 a
 loss
 or
 outgoing
 –
 what
 is
 the
 outgoing
 
3. Was
 it
 incurred
 in
 producing
 assessable
 income
 

Apportionment
 of
 expenditure
 –
 ronpibon
 tin
 
No
 limits
 on
 deductions
 –
 cecil
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • NT1330 FINAL EXAM NOTES Essay
  • comm 210 notes for final Essay
  • NT1210 Final Exam Notes Essay
  • Final Essay
  • Final Exam Review Notes Essay
  • Essay about Final Notes
  • Literture Final Exam Notes Essay
  • Principles of Taxation Final Notes Essay

Become a StudyMode Member

Sign Up - It's Free