Section 8-1 General Deduction – Simple, Isn’t it?
Overview
How does the general deduction provision, as one of the fundamental parts of the income tax equation affect liabilities for clients and how can we help clients best to comply?
The general deduction provision in s8-1 is one of the most important provisions in the income tax code. Some think it simple, but it embodies a range of complexity in practice which are worthy of discussion to increase understanding for practitioners and their clients.
This session will look at structure of the provision and relevant case law:
- Context and history of s8-1 (and its predecessors)
- Analysis of the two positive limbs of s8-1:
- Incurred in earning assessable income
- Necessarily incurred in carrying on a business
- Timing of recognition of deductions
- Negative limbs – Apportionment – to the extent incurred for
- Private or domestic
- Capital
- Earning exempt or non-assessable, non-exempt income, OR
- Specific denial of deduction provisions
- Potential Overlap with Specific Deduction provisions
- Potential Interaction with Part IVA
- Substantiation for Work Related Expenses Div 900
- Interaction with FBT – ‘Otherwise Deductible Rule’
- Risks of getting it wrong:
- Interaction with the promoter penalty laws
- Interaction with obligations under the Tax Agent Services Act 2009
Learning Outcomes:
Participants will consider relevant case law and ATO warning documents to gain an improved understanding of:
- the operation of each of the positive limbs
- timing issues for recognition of deductions
- the operation of the ‘to the extent that’ apportionment part of the negative limbs
- the operation of each of the negative limbs
- risks of ‘getting it wrong’
Suited to:
Accountants, tax practitioners, BAS agents, lawyers and other practitioners serving private groups and wealthy individuals.
This On Demand recording Includes:
- Recording of the Live Webinar, which can be viewed multiple times, for as long as required
- Presenters contact details for follow up questions
- CPD Quiz
- CPD Certificate
- CPD Report – Logged automatically
- PowerPoint Presentation
- Verbatim Transcript, with Searchability
- Supporting Documentation
Course syllabus
3 lessons
- Video – Section 8-1 General Deduction – Simple, Isn’t it?Video
- Feedback Survey QuestionsSurvey
- Knowledge QuizTest
Your presenter
Bruce CollinsTax Controversy Partners
is the founder and principal solicitor at Tax Controversy Partners Pty Limited, currently helping clients to resolve all types of tax issues with the ATO and SROs. Before moving into private practice in 2017, Bruce worked for over 35 years in the Tax Office, a third of this time as a Senior Executive in what is now Client Engagement Group, covering most ATO functions. Bruce was the leader of the Technical & Case Leadership area in Aggressive Tax Planning and then Private Wealth for several years prior to leaving the ATO, as well as having previously been the strategic and technical leader for many of the ATO’s private group and adviser-focused compliance programs. In those roles, Bruce was involved in mitigation strategies for many tax planning arrangements – mostly involving tax deduction schemes.
Bruce has an Accounting Certificate (1989), a First-Class Honours Degree in Law (1995), a Graduate Diploma in Legal Practice (1996), a Master of Taxation (2003) and a Master of International Taxation (2006). Bruce is a Chartered Tax Advisor with the Tax Institute, a member of the Law Society of NSW, a member of the AICD and is both a member of the Law Council of Australia, their Tax Committee and is the current Chair of the Law Council SME Business Law Committee.