Herald Times Weekly V FCT: General Overview
s8-1 General Deductions provision
Sufficient nexus
- Reliability and relevance in gaining or producing AI => in the course of
Herald Times Weekly v FCT – natural consequence of income producing activity • Taxpayer owner and publisher of an evening newspaper • Claimed deduction for damages and legal expenses to defend and sttle defamation actions • Deemed relevant – the thing which produced the assessable income was the thing which exposed the taxpayer to the liability or claim • Cannot be excluded simply because the obligation to make it is an unintended consequence which the taxpayer desired to avoid • Practical inevitable in the publication of an evening newspaper
Charles Moore & Co P/L v FCT – what is the …show more content…
to the extent that u acquire it in carrying on ur enterprise) The supply of the thing to you is a taxable supply You provide, or r liable to provide, consideration for the supply Registered or required to be
GST – free supplies No GST payable but the supplier is entitled to claim input tax credits. Examples: Food GST free except food consumed on premises where it is supplied, hot food for consumption away from the premises, confectionary, ice cream, biscuits etc… Health and Medical care Edu Child care
Input taxed supplies No GST is payable on supply but the supplier can not claim input tax credits for the GST paid on the inputs to the supply
Sufficient nexus
- Reliability and relevance in gaining or producing AI => in the course of
Herald Times Weekly v FCT – natural consequence of income producing activity • Taxpayer owner and publisher of an evening newspaper • Claimed deduction for damages and legal expenses to defend and sttle defamation actions • Deemed relevant – the thing which produced the assessable income was the thing which exposed the taxpayer to the liability or claim • Cannot be excluded simply because the obligation to make it is an unintended consequence which the taxpayer desired to avoid • Practical inevitable in the publication of an evening newspaper
Charles Moore & Co P/L v FCT – what is the …show more content…
to the extent that u acquire it in carrying on ur enterprise) The supply of the thing to you is a taxable supply You provide, or r liable to provide, consideration for the supply Registered or required to be
GST – free supplies No GST payable but the supplier is entitled to claim input tax credits. Examples: Food GST free except food consumed on premises where it is supplied, hot food for consumption away from the premises, confectionary, ice cream, biscuits etc… Health and Medical care Edu Child care
Input taxed supplies No GST is payable on supply but the supplier can not claim input tax credits for the GST paid on the inputs to the supply