Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income. Provision of doubtful debts of $4,200 for a detective agency.Speeding fines of $ 700 paid by an owner to a driver.An amount of $1,000 paid to a solicitor for preparing a partnership deed.Travel cost of a business executive to attend a trade fair in Munich paid by the employer.Newspapers purchased by an accountant who advises clients on financial and investment matters.For tax purpose, in what circumstances are individuals and companies treated as residents of Australia? Explain based on the the Income Tax Assessment Act 1936 (Cth) and relevant case law.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income.

Provision of doubtful debts of $4,200 for a detective agency.
Speeding fines of $ 700 paid by an owner to a driver.
An amount of $1,000 paid to a solicitor for preparing a partnership deed.
Travel cost of a business executive to attend a trade fair in Munich paid by the employer.
Newspapers purchased by an accountant who advises clients on financial and investment matters.

For tax purpose, in what circumstances are individuals and companies treated as residents of Australia? Explain based on the the Income Tax Assessment Act 1936 (Cth) and relevant case law.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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