Calculation of Taxable Income

In addition to calculating their decline in value deduction and assessable/deductible balancing adjustments, Dextress Hair and Beauty Pty Ltd requires your group to prepare a reconciliation of accounting profit to taxable income for the year ended 30 June 2015.

Dextress has approached your group to prepare the reconciliation of accounting profit to taxable income for the year ended 30 June 2015. For each of the 18 items listed above (other than Item 19 “Other tax deductible expenses”), identify the tax adjustments (even if the adjustment is zero) and provide the relevant section reference.

There is no need to calculate the tax payable by the company, just its taxable income. Assume that the company wishes to minimise its taxable income, wherever legally possible.

Please make sure you justify your answer with brief appropriate references to relevant sections of the ITAA (1936) and ITAA (1997), cases and Taxation Rulings and Taxation Determinations. Show all calculations.

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