Compensation for natural disasters: The tax consequences

Delany, Tom (2012) Compensation for natural disasters: The tax consequences. Taxation in Australia, 46 (6). pp. 248-252. ISSN 0494-8343

Abstract

The financial impact of natural disasters (including floods and cyclones) on business taxpayers can be immense and, in some cases, sufficient to result in the business ceasing to operate. As a result of recent natural disasters, federal and state governments have made certain grants to affected businesses in the form of cash payments and reimbursements. This article reviews the potential application of goods and services tax on the receipt of such grants, in addition to the entitlement to input tax credits for related acquisitions. This article also reviews the income tax treatment of certain grants and the availability of tax deductions for expenditure related to the grant moneys received.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: No
Item Status: Live Archive
Additional Information: Permanent restricted access to published version due to publisher copyright policy (Taxation Institute).
Depositing User: Mr Tom Delany
Faculty / Department / School: Historic - Faculty of Business and Law - School of Law
Date Deposited: 18 Aug 2012 02:56
Last Modified: 18 Jul 2014 04:57
Uncontrolled Keywords: compensation; natural disasters; taxation; Goods and Services Tax; GST; income tax ; reimbursements; government grants; tax deductions; assessable income
Fields of Research (FOR2008): 18 Law and Legal Studies > 1801 Law > 180125 Taxation Law
Socio-Economic Objective (SEO2008): C Society > 94 Law, Politics and Community Services > 9499 Other Law, Politics and Community Services > 949999 Law, Politics and Community Services not elsewhere classified
Identification Number or DOI: 0494-8343
URI: http://eprints.usq.edu.au/id/eprint/20687

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