ACCT2331 Chapter 16, 33.1: ACCT2331 Chapter 16, 33.: ACCT2331 Chapter 16, 33: ACCT2331 Chapter 16, 3: ACCT2331 Chapter 16, : ACCT2331 Chapter 16,: Chapter 16,33.1
Document Summary
Income tax is payable on a taxpayer"s taxable income for an "income year" [p423: to determine in which income year ordinary income and general deductions are brought to account, it is necessary to examine the terms: 16. 2 when is income derived: when income is derived is determined "by the application of ordinary business and commercial principles" [p424] Method which "is calculated to give a substantially correct reflex of the taxpayer"s true income" (carden"s case) [p424] Method that most accurately represents the "truth and reality of the situation" (ballarat brewing co) [p425] The cash basis (when cash or equivalent is received): Employment income (eg salary and wages) [p425] Income of sole traders (firstenberg, dunn) [p425] The accruals basis (when income is earned): Income from professional partnerships (henderson, barratt) [p426,427] Income from trading business (j rowe & son) [p428] The taxpayer must have completely subjected itself to the loss or outgoing (james. A presently existing liability must exist (nilsen development laboratories) [p432]
