Question Tag: Pooling System

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PT – Nov 2021 – L2 – Q4b – Corporate Tax Liabilities

Explain the tax implications and rules governing the pooling system for depreciable assets.

A Class 1, 2, or 3 depreciable assets owned and employed by a person during a year of assessment in the production of income from a particular business shall, at the time the asset is first owned and employed by that person, be placed in a pool with all other assets of the same class owned and employed by that person in the business.

Required:
What are the implications and taxation rules governing the above statement?

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PT – Nov 2021 – L2 – Q4b – Corporate Tax Liabilities

Explain the tax implications and rules governing the pooling system for depreciable assets.

A Class 1, 2, or 3 depreciable assets owned and employed by a person during a year of assessment in the production of income from a particular business shall, at the time the asset is first owned and employed by that person, be placed in a pool with all other assets of the same class owned and employed by that person in the business.

Required:
What are the implications and taxation rules governing the above statement?

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