Taxation Law Assignment Essay Example | Topics and Well Written Essays - 2500 words

Taxation Law Assignment - Essay Example However, this section also puts a discretionary element into the ATO's or the Judge's determination because the expenditure has to be necessary to the actual capital gain, which brings into question the validity of the expenses that are preparatory in nature or for other purposes rather than the actual construction. The key point that this judgment made is that the determination of this and subsequent cases is in reference to all circumstances, which includes an examination of the taxpayer's purpose or intention in incurring the expenditure. If it is necessary to apportion a loss or outgoing, the appropriate apportionment will depend on the facts of each case. The method taken must be fair and reasonable as per the case of Ronipibon Tin NL v Tongkah Compound NL v FC of T [1949] (78 CLR 47). The expenditure to be deductible if it necessarily incurred for the particular income producing purpose in question, which can include limiting to an the income for just a particular year as per t he case of Fletcher v Federal Commissioner of Taxation [1991] (173 CLR 1). In this case of the vacant land that was leased in the aforementioned ATO decision the owner did not purchase the land for leasing, rather private purposes so in the original sale there was no allowable deduction. Now the owner is using the land to bring in income, therefore the owner is allowed a deduction in the tax year that is expended up to the amount of the income earned but not exceeding this. In the case of the swimming pool that BLW have built on the vacant land that they own they are sure to be allowed certain expenditures on the land as allowable deductions. The first thing to identify is that the improvement and expenditure outlaid is not for private purposes, because if it were the costs would not be deductible. As the purpose of the expenditure is to build a swimming pool for the community, which will cost to enter then it is classed as a business venture and therefore valid deductions are possible from the income of $60,000 from Mulga Council. It needs to be noted that the whole profit is counted as no GST was paid because in this dealing of the monies going to BLW from the council there was a tax exemption. In relation to the $660, 000 to the builder of the pool one has to consider whether this is deductible or as this is the contractual duty that BLW owed to Mulga to get the $600,000 then it is not a deductible cost because it is the work that needs to be complet ed to get the $60,000. Therefore under Section 8-1 of the ITAA it is not a deductible costs; however for the other costs that are mentioned they may be deductible. Also in respect to deduction and depreciation under CGT and cost bases this property fulfills the requirement, which is that the land is improved to enhance the value of the

Six Sigma Essay Example | Topics and Well Written Essays - 500 words - 1

Six Sigma - Essay Example s is that it helps them grow into effective and informed managers capable of understanding the business from the perspective of cost, quality and delivery. It also helps the employees to perceive the role of improvement from a practical point of view (SNEE & HOERL 2003: 4). As reported by General Electric company which is the most-valued company listed in the numerous United State stock exchanges and it provides different lines of products, the use of six sigma had the following impacts (BREYFOGLE, CUPELLO & MEADOWS 2001: 32): 3. In the trailer leasing business there was a 62% reduction on time spent at the repair workshops that lead to massive productivity achievement for their customers and in their company it is three times faster than the competitors because of the application of six sigma. 4. In the plastic business there was an additional 300 million pounds of new capacity and the company saved 400 million pounds on investment and was projecting to save the same amount by the year 2000 (BREYFOGLE et al., 2001:33). The fact that General Electric Company made huge profits through employing the six sigma does not mean that any company can employ it without precaution because it is not a fast get rich plan. It is a very complex, but it is an initiative with a possibility of rewarding very well. Employing traditional six sigma methodologies has propelled projects into the system that may not have any value to the whole organization (BREYFOGLE 2003:6). Traditionally, six sigma was used by manufacturing companies but presently it is being used by other corporations so it may be viewed that it will disappear with time. Putting into consideration that the other quality improvement programs do not achieve the expected results in financial savings, it is imperative for companies to integrate the six sigma which is flexible and vigorous (AKPOLAT 2004: 4). The six sigma tools that a company should focus on are: voice of technology evaluations, benchmarking,