Which of the following is not a factor listed in Section 177D(2) ITAA36;

Select one:

a. The form and substance of the scheme

b. Any change in the financial position of the relevant taxpayer that has resulted, will result, or may reasonably be expected to result, from the scheme

c. The time at which the scheme was entered into and the length of the period during which the scheme was carried out

d. The result in relation to the operation of the Act that, but for this Part, would be achieved by the scheme

e. The manner in which the scheme was entered into or carried out

f. The subjective intention of the relevant taxpayer

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Felicity pays $75,000 to Cassandra, a solicitor, for advice regarding the Capital Gains Tax implications of a property development she is about to undertake. The invoice states that $70,000 was billed for advising her that she should set up a trust to run the development, and $5,000 to establish the trust. Which of the following statements is correct?

Select one:

a. No amount is deductible because tax is a defined term (s995-1) and means income tax only.

b. The $75,000 is not deductible because Cassandra is not a 'recognised tax advisor'

c. $75,000 is deductible under Section 25-5 (1) ITAA97 as it is a fee is charged for advice from a recognised tax adviser as to the operation of the Commonwealth tax laws in relation to such a structure.

d. $70,000 is deductible under Section 25-5 (1) ITAA97 as it is a fee is charged for advice from a recognised tax adviser as to the operation of the Commonwealth tax laws in relation to such a structure. However, insofar as the $5,000 is paid to establish and implement the structure, it would not be deductible as it is capital expenditure under Section 25-5(4) ITAA97.