Discuss whether the following would be deductible under Section 8-1 of the ITAA (1997). If the item is not deductible, indicate which negative limb of Section 8-1 applies to disallow the deduction.

Assume thatallof the items were incurred during the year ended 30 June 2020:

(a)Legal fees paid to a solicitor in respect of the preparation of a partnership agreement for a partnership which will be used to receive assessable income.

(b)Mobile telephone calls where the taxpayer was able to establish a pattern of usage showing that it was used 40% for business and 60% for private purposes.

(c)Interest paid on money borrowed to purchase News Corporation Ltd shares. The shares are bought with the intention of being held for the long-termand are expected to pay an annual dividend.

(d)A speeding fine incurred by the owner-driver of a taxi whilst driving a customer to the airport. The customer was late leaving home and asked the taxi driver to drive fast so that he could catch his international flight.

(e)Legal fees incurred by a butcher in defending a prosecution for selling wombat meat. If the prosecution is successful, the butcher will lose his licence to operate.

Please quote appropriate references to relevant sections of the ITAA (1936) and ITAA (1997) in your answer.