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Payments received where no fixed gross amount

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Payments received where no fixed  gross amount identifiable ( Moneymen  Pty Ltd  ) Compensation amounts - Compensation amounts -     income income § Payments that replace, substitute or 
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compensate a taxpayer for revenue  items or amounts that would have been  received on revenue account are  generally income:  § Loss of trading stock ( Wade ) § Loss of income under insurance  policy ( DP Smith ) § Cancellation of employment contracts  ( Phillips ) § Cancellation of trading contracts  ( Heavy Minerals Pty Ltd,   Liftronic Pty  Ltd ) Compensation amounts - Compensation amounts -     capital capital § Payments that replace, substitute or  compensate a taxpayer for the loss or  destruction of a capital asset are  generally capital: 
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§ Closing down or sterilisation of a  capital asset ( Glenboig Union  Fireclay Co Ltd ) § Cancellation of structural contracts  ( Van den Berghs Ltd )   § Cancellation of agency agreements  that are integral to the taxpayer’s  business ( Californian Oil Products  Ltd ) Reimbursements Reimbursements § No common law rule that  reimbursements of deductible expenses  are income ( Rowe § Reimbursements can nevertheless be  income where they are ordinary  proceeds of taxpayer’s business ( HR  Sinclair & Son Pty Ltd ) § Div 20 ITAA97 deems certain kinds of  recouped expenditure to constitute 
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assessable income Gross and net amounts of Gross and net amounts of     income income § Income may be calculated on a “gross”  or “net” basis § Under a gross basis, gains are  assessable and expenses may be  separately deductible § Under a net basis, gains less  expenses are assessable § Gross basis applies to:   § Ordinary proceeds from a business § Net basis applies to: § Gains from realisation of revenue  assets and profit-making schemes
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