Advice International Small Business Journal â€Myassignmenthelp.Com

Question: Discus About The Advice International Small Business Journal? Answer: Introducation The section 8-1(1) of the ITAA 1997 mainly helps in depicting the overall deduction that could be used by the income tax payers to reduce the overall assessable income. These reductions are mainly conducted to reduce the unethical burden on taxpayer and provide relevant exemptions where assessable income could be reduced. Furthermore, the section 4-15 Income Tax Assessment Act, mainly helps in identifying the overall allowable discount that could be used by the individual for reducing any kind of income tax (Vann 2016). However, there are relevant deduction that need to be evaluated whether it comes under section 8-1(1) of the ITAA 1997 as deductible expenses. The overall expenses borne by the organisation for the transfer of Machinery from one place to another under the section 8-1 of ITAA 1997 is mainly considered to be deductible expenditure. There are different types of cases, which could be evaluated understand the expense conducted on transfer of machinery. Cases such as Smith v Westinghouse Brake Company (1888) and Granite Supply Association Ltd v Kitton (1905) can be used as a reference for the deductible expense. The second situation mainly states that whether deductions could be conducted on revaluation of assets. Under the section 8-1 of ITAA 1997, it is stated that any kind of revaluation of assets that is be conducted by the organisation need not be considered a deductible taxable expenses. The third situation directly states that whether the expenses conducted on lawful proceedings is deductible in nature. Under the section 8-1 of ITAA 1997, relevant expenses It is been conducted on lawful proceedings of an individual is deductible and nature, which could directly be reduced from the assessable income (Tan, Braithwaite and Reinhar 2016). The last situation directly indicates that any kind of expenditure that is conducted on solicitor by the organisation is relatively deductible in nature under the section 8-1 of ITAA 1997. Big Bank Limited is currently invested highly on advertisement, which could directly help in promoting one of its products and increasing demand for its other services. However, the bank is directly evaluating the situation of the expenses under the GST Act 1999, where relevant expenses inclusive of GST will mainly be transferred to tax credit. Therefore, it could be stated that GST input credit allows organisation to reduce the overall taxes that is been imposed on the organisation (Hedges et al. 2017). Rules relating to the situation: Relevant rules regarding GST input credit can be identified from Chapter 2, GST Act 1999, the relevant formations that are being given the organisations buying a relevant products having GST inclusive course. The Act directly changes the GST paid to tax credit GST, which could be utilised by the organisation for reducing its taxes (Fry 2017). Taxes paid by the organisation are relatively reduced with the help of tax credit GST, as depicted in GST Act 1999. Issues of the overall situation: The relevant issues that could be identified from situation is the adequate Expenditure on advertisements that is conducted by Big Bank Limited. Relevant detection of the expenditure on advertisement and its GST needs to be identified as deductible in nature with the help of input credit tax. The expenses of $1,650,000 need to be evaluated, whether GST paid by the company can be used for input tax credit or not. Analysis of the overall situation: Big Bank Limited has mainly used an enormous financial structure where adequate operational liaison is present within the organisation to support its activities. Therefore evaluation of the advertisement expenses that is conducted by the organisation mainly states that there are the two types of advertisements that were conducted. The first advertisement was mainly for the promotional of false and other activities that was currently being provided by Big Bank. However, the expenditure was mainly conducted on a new product where only 2% of the revenue will increase from that in advertisements (Blakelock and King 2017). Hence, the expenses of $550,000 could directly be considered, as non deductible amount under the GST rule. Moreover, $1,100,000 could be identified as GST deductible expense under the GST Act 1999. Conclusion: Big Bank Limited directly indicated that overall expenses that were conducted on the advertisements can be segregated into sections. The first expense of $1,100,000 is mainly considered under the GST rule and the organisation could opt for tax credit. However, the expenditure of $550,000 is non-deductible in nature under the GST rule. Nevertheless, that 2% of the expenditure is considered under the GST rule and could be used as tax credit. This is mainly due to the income or revenue that will be increased from the advertisement. Devaluation of figure 2 and 3 relevant assessable income of Angelo could be identified, which could help in pointing the reduction in tax expense that could be achieved. With the help of Figure 2, the actual taxable income that needs to be paid by Angelo is mainly depicted. However, figure 3 directly indicates the closer method income calculation which can be deductible from net income tax (Kennedy et al. 2017). This is mainly identified as tax offset which could be used by Angelo for reducing its current assessable income. Hence, (13,040.18 4,221.68) = $8,818.51 is mainly identified as the overall Tax that needs to be paid by Angelo. There is relevant foreign tax offset limit, which needs to be maintained by income taxpayer. Reference Barkoczy, S., 2016. Foundations of Taxation Law 2016.OUP Catalogue. Barkoczy, S., 2017. Core Tax Legislation and Study Guide.OUP Catalogue. Berg, C. and Davidson, S., 2016. Submission to the House of Representatives Standing Committee on Tax and Revenue Inquiry into the External Scrutiny of the Australian Taxation Office. Blakelock, S. and King, P., 2017. Taxation law: The advance of ATO data matching.Proctor, The,37(6), p.18. Fry, M., 2017. Australian taxation of offshore hubs: an examination of the law on the ability of Australia to tax economic activity in offshore hubs and the position of the Australian Taxation Office.The APPEA Journal,57(1), pp.49-63. Hedges, J., Anderson, H.L., Ramsay, I. and Welsh, M.A., 2017. No'Silver Bullet': A Multifaceted Approach to Curbing Harmful Phoenix Activity. Kennedy, T., Smyth, R., Valadkhani, A. and Chen, G., 2017. Does income inequality hinder economic growth? New evidence using Australian taxation statistics.Economic Modelling. Tan, L.M., Braithwaite, V. and Reinhart, M., 2016. Why do small business taxpayers stay with their practitioners? Trust, competence and aggressive advice.International Small Business Journal,34(3), pp.329-344. Vann, R.J., 2016. Hybrid Entities in Australia: Resource Capital Fund III LP Case. Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2016. Australian Taxation Law 2016.OUP Catalogue.