000			01910nab a2200229 c 4500
999			_c143441 _d143441
003			ES-MaIEF
005			20210127103842.0
007			ta
008			210127t2020 4 ||||| |||| 00| 0|eng d
040			_aES-MaIEF _bspa _cES-MaIEF
100	1		_968148 _aAllen, Christina
245		0	_aFrom uncertainty to objectivity _breforming tax deductions for repair costs in Australia _c Christina Allen
260			_c2020
500			_aResumen.
520			_aIn Australia, the cost of repairing an asset used to produce assessable income is immediately deductible under s 25-10 of the Income Tax Assessment Act 1997. To claim this deduction, the repairs must not be of a capital nature. The courts have developed three tests to distinguish repair costs from capital expenses. The first test, the ‘initial repair test’ is fairly sound. However, the other two tests, which focus on replacing and improving assets, are far less reliable. This article begins with a general discussion on repairs and critiques the three tests used for characterising repair costs. It explores the rationale for allowing immediate tax deductions for repair costs and the significant difficulty involved in producing coherent and consistent tax outcomes in practice. Next, the article demonstrates this difficulty through a survey of case law, arguing that the current rules need to be clarified. Lastly, the article recommends that new tax rules be adopted to deal with repair costs, to complement the existing regimes governing depreciating assets and capital works, simplify tax administration and reduce compliance costs.
650			_aIMPUESTOS _947460
650		4	_aGASTOS DEDUCIBLES _944899
650		4	_aPRUEBA _948177
650		4	_932206 _aAUSTRALIA
773	0		_9164098 _oOP 1867/2020/4 _tAustralian Tax Forum: a journal of Taxation Policy, Law and Reform _w(IEF)103415 _x 0812-695X _gv. 35, n. 4, 2020, p. 496-520
942			_cART