LAWS3101 Study Guide - Midterm Guide: Lump Sum, Royalty Payment, Capital Asset
Document Summary
These 4 elements are commonly known as the negative limbs of s8-1 as an expense which satis es any one of these elements will not be deductible: capital or capital in nature. Expenses that are not capital or capital in nature are called revenue expenses . An expenses that relates to the taxpayer"s income-producing process will be a revenue expense, while an expense that relates to the taxpayer"s income-producing structure will be a capital expense. Revenue expenses generally provide the taxpayer with bene ts in the current year while capital expenses generally provide the taxpayer with bene ts over a period of years. Sun newspaper ltd and associated newspaper ltd v fct - non deductible because the expense strengthened his business structure, and therefore was capital in nature. The taxpayer sun newspaper was a newspaper publisher. Their principal competitor was the world published by sydney newspapers ltd.
