Reference no: EM131188349
Discuss the deductibility or not of the following amounts:
(a) Parking fines paid by a taxi driver.
(b) Interest paid in respect of an overdraft used to purchase additional equipment used in the business.
(c) Donation of $200 to World Vision.
(d) $1,200 paid to lawyers for advising and preparing a partnership agreement.
(e) Cost incurred by a car hire business to tarmac (pave) their car park. The car park was gravel but was damaging the vehicles.
(f) Gift of $800 to a political party by Telcom Pty Ltd.
(g) Matt, a tax accountant hires his son, Graham, who is studying a Masters in Tax Law to help in his practice on days when Graham has no lectures. The going rate for a junior accountant is $30 per hour but as Graham gets high distinctions and is top of his class, his father pays him $45 per hour
(h) A doctor who works on call at the local hospital receives a mobile phone bill for $600 for the month. He estimates that 75% of the calls he makes/receives are work related.
(i) In a chart of accounts of a particular business the following three accounts were listed: ‘Estimated bad debts’, ‘Debts written off during the year’, and ‘Estimated doubtful debts’. (j) While on his way to the bank, the manager of a jewelry shop was robbed of $15,000 worth of cash.
(k) A taxpayer receives an account from her tax agent for a total of $1,000. $600 of the account is in respect of the preparation and lodgment of her income tax return and $400 of the account is in respect of advice on GST and her business arrangements.
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: Discuss the deductibility or not of the following amounts: Interest paid in respect of an overdraft used to purchase additional equipment used in the business. $1,200 paid to lawyers for advising and preparing a partnership agreement. In a chart of a..
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