Luxwood is a resident private company established in 2011 to manufacture quality furniture that is sold to retailers under several brand names and directly to the public. In respect of each task, the requirement is that you:

• Identify the issue/issues raised
• Identify and discuss the relevant provisions of the legislation, case law, ATO rulings and determinations of Australia.
• Advise the company what amounts are assessable or deductible for each Task.

Note: Disregard GST and Small Business Entity related matters You will not receive marks for discussing these.

Task 4 In November 2019 a visitor to Luxwood showroom slipped on the steps and sustained injuries requiring medical attention. She claims one of the steps was loose and commenced legal proceedings against Luxwood alleging her injuries were caused by the poor condition of the building. Luxwood has so far incurred legal expenses of $4,000 and the action has not been settled at 30 June