This website uses cookies to ensure you have the best experience. Learn more

Clara Lees Cakes Pty Ltd Compensation Received For The Cancellation Of Contract To Regarded As Taxable Or Not??

410 words - 2 pages

Generally trading contracts entered into by a business are usually revenue assets which are dealt with by a business for the purpose of generating a profit. If a trading contract is cancelled the compensation payments are treated as assessable income. Structural contracts are capital assets and cancellation of such a contract substantially affects the business. Compensation for a structural contract is generally a capital receipt .To consider whether the compensation paid to Clara Lees is as assessable income or a capital receipt, we could refer the ...view middle of the document...

The court held the compensation to be an assessable income as the taxpayer was engaged in many business contracts at the same time and the cancellation of one of these contracts did not affect the capital structure of the business.As Clara Lees cakes Pty Ltd were engaged in 25 different agreements of the same nature, the compensation was received for cancellation of a contract made in the ordinary course of business and did not affect the conduct of the Clara Lees's business. Clara Lees could refer to the outcome of Californian Oil Products Ltd v FCT (1934) where the court held the compensation were capital in nature as the taxpayer had the power to carry on other business activities but it chose to restrict its business operations to marketing a particular brand of petroleum products which resulted in the liquidation of business after cancellation of the agency contract.To be a capital receipt, it needed to a substantial part of the business but as it was one of many contracts held by Clara Lees and, as such, compensation for its loss cannot constitute a capital item. The compensation received as a result of cancellation of its contract is to be considered as an income for the loss of anticipated profits. Therefore, the compensation received by Clara Lees will be assessable in full under sec 6-5

Other Essays On Clara Lees cakes Pty Ltd - compensation received for the cancellation of contract to regarded as taxable or not??

How 'Roseanne', the tv show relates to the sociological aspect of women and work. I had to write this for an extra credit paper, it's not great, but it gets the point across

524 words - 3 pages female coworkers who have beenworking for hours.The relationship between the television show and our discussions inclass are uncanny. The wealthy male owns the business, or runs it, and thefemales work their butts off. The women that work at the diner are allmiddle-aged, some are married, some are not, and they all hate the job witha passion. The book we read Nickel and Dimed also can relate to Roseanne.The women work as many hours as possible

Was the Treaty of Versailles harsh or lenient to Germany?

369 words - 2 pages The Treaty of Versailles was harsh to Germany. The reparations to the Allies was a heavy burden to Germany, it could not rebuild the economy after the war. The territorial arrangement led to loss of land and loss of Germans. The disarmament weakened its military power.Firstly, reparation of $6,600 millions for the losses and damages caused by the war to the Allies was a heavy burden to Germany. It had no money but it needed to pay for the

Essay For "All The King's Men" By Robert Penn Warren. Man As A Slave To Knowledge

1423 words - 6 pages characters of Willie Stark, Adam Stanton and Jack Burden.Willie Stark is a character that attempts to conquer knowledge, even though in the end, he is overcome by the forces of knowledge. Willie did not want to be a slave to knowledge, but rather, its keeper. Stark uses information about people for blackmail, to achieve his goals. His goals for political offices ranged from Mason County Treasurer to state governor, senator, and most likely

Prac Essay For Area Of Study- Physical Journey "The Journey Not The Arrival Matters"

1167 words - 5 pages , this particular journey was 'taken' to find what the consequences of the arrival would be. The arrival (or the outcome of the arrival) in this case--was the spur for the journey.Contrasting with Lionheart, The Road Not Taken was a journey made purposely for the outcome of the arrival. Jesse Martin describes his desire to sail around the world was to experience the trip itself. He does make reference to the arrival, as he also feels incitement

A Incite Into The Pressures Of Life As A Teenager. As Compared To The Simplistic Existance Of A Fly

971 words - 4 pages encounter each day of our lives. Sure they know that we both do well at school, that we represent our student body at numerous ceremonies, that Michael is a star Basketball player, and I a dedicated swimmer. But they do not comprehend the stress we feel nor are they aware of the alcohol we consume, drugs we administer or sexual positions we practice.Michael and I sit for a while, but as boredom sets in, we stand, lethargic and make our way to the

This Is An Essay Analyzing The Articles Of Confederation As A First Draft For The Constitution

526 words - 3 pages have a rough draft and establishing a nation is no different. Without the experiences of inter state rivalries, lack of funding, and problems with foreign policy, they would not have been fixed or provided for in the constitution. The Articles proved to Americans the necessity of a strong federal government that still delegates some power to the states. With all its shortcomings, it did govern the U.S. for a short time without any huge disasters befalling the country. While not a good document in the long run, it was an excellent learning experience and a great short-term plan.

Extended Definition Of Death And The Benifits To Society That Are Not Commonly Discussed

1115 words - 5 pages of death as a new beginning is personal gains. All popular religions believe in some form of life after death. Most believe in heaven, or some form of eternal happinessand well-being. For example, when a Protestant dies, they are judged by their God and sent to heaven or hell depending on their actions in life. Under this belief, death is not something to fear unless one is unsure of their worldly actions or their religious convictions. In such a

Empowered Education, Democracy In The Classroom. Do Principles Of Democracy Enhance Success In The Classroom Or Not? Yes, Also Democracy Is Defined

1386 words - 6 pages According to James Hoffman, "Recent attempts to reform schools in the U.S. have been decidedly undemocratic in nature and spirit." The state has now mandated standardized testing plans, curriculum frameworks for reading and language arts, testing programs for students these programs are having a direct impact on the curriculum for teacher education. This is not the answer. This is not the answer, if this continues student will drop out of school

The Importance of MNC'S to the World: Good or Bad Influence

414 words - 2 pages Multinational corporations are companies with their home base in one country and operations in many other nations. Most of these, very immense firms, establish in third world countries or developing countries where they manufacture the same identical product for very low costs compared to the ones in developed countries.One of the purposes of MNC's is to create an economic development which is described as sustained growth in income per capita

The USSR's Actions Against The US Were Simply Reflexes, Not Direct Contributions To The Causation Of The Cold War

1245 words - 5 pages as well, since America and Britain were granted the exact same rights. And though the main contention at Potsdam revolved around the details of the division of Germany, size of the reparations to be paid, and the USSR's influence over eastern European countries, the US's main concern is not in politics or the fear of an expansive Soviet empire (for such allegations are nonsensical considering the state of the war-torn nation), but rather in the

Is The U.S. Using The Issue Of Truck Safety As A Trade Barrier To Mexico?

884 words - 4 pages accidents increased 25%.Clearly, Mexico does not have a monopoly on unsafe trucks. Yet despite the fact that nearly three-quarters of U.S. trucks have not ever been rated for safety. And that of the 26% that have been, two out of every five fail to rate as "satisfactory," the parties that are so vehemently concerned with the safety hazards Mexican trucks present have never suggested that overall resources for highway safety inspections be

Similar Papers

Good Faith In The Law Of Contract

3316 words - 14 pages dealings or the ability to take advantage of a weaker party if one existed. This occurred because it was hard for the courts to move away form the common law principles of Laissez Faire. Judges did not like exemption clauses, as there was no rule of law to indicate what to do with unfair exemption clauses. What judges could do if they found that the contract was against the fundamental principles of contract was to ?wind? and ?bend around? and

Clara Barton, Founder Of The American Red Cross And A Civil War Nurse

560 words - 3 pages granted her the ability to begin a letter writing campaign to search for missing soldiers through the Office of Correspondence. Later in her life, Barton continued to search for missing soldiers and also became involved in the suffragist movement. In 1869, she traveled to Europe for rest as directed by her doctor. In Europe she was educated about the concept of the Red Cross as outlined in the Treaty of Geneva and also by observing the Red Cross while

Hamlet. 'to Be Insane Or Not To Be Insane That Tis The Question'

1206 words - 5 pages , logical reason for all of his actions.Hamlet, at the very least was sane. In the play Hamlet was percieved as being mad, butthere was a just cause. The symbolic meaning of Hamlet's actions are the underliningmeaning for his unconscious motivation toward his actions. This means that Hamlet, maybenot knowing it at the time, would logically justify his actions. For example in act III,Hamlet said to Ophelia:You should not have believed me;for virtue

Homosexuality In A Christian Society....This Essay Discusses Both Sides To The Controversial Subject Of Whether Or Not Homosexuals Should Be Accepted By A Christian Civilization

1268 words - 6 pages regardless of ability, age, ethnicity, gender, race, sexual orientation, or social circumstances are welcome to full participation in the life of the congregation." Even with my church being open with this issue, I still am not sure how I feel on the matter. The morals of today's population vary from person to person, and a topic such as homosexuality, in this instance, can be very controversial in the current events of today's world. Should a