Each of parts below contain separate statements that you are required to answer separately. For each statement indicate whether it is TRUE or FALSE and briefly explain your reasons with reference to legislation, case law or rulings (as appropriate). 

1. As confirmed in FCT v Western Suburbs Cinemas Ltd, the cost of replacing a subsidiary part of an asset using a different material to the original will always be considered a loss or outgoing that is capital in nature and not deductible as a repair under section 25-10 ITAA97. 

2. Income or gains from illegal activities, such as insider trading or theft are not assessable as they are not income according to ordinary concepts, and there is no statutory provision that operates that bring them into assessable income. 

3. Consideration is one of the elements of a taxable supply and it is a defined term in the ‘GST Act’.

Answer rating: 100% (QA)

1 True Explanation in accordance with the provisions of section 25 10 a person can deduct expe... View the full answer