John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year.
John incurred legal expenses as he was sued for false advertising.
John purchased new fridge to the shop - $800. In addition, his builder added more space to the
shop front. This cost him $22,000.
John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs
him $1,500.
John received a City of Sydney fine for putting his sales item for display outside his shop without
a permit. He required to apply for a permit to use the footpath.
Required:With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events. (Australian Taxation Law question )
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