ASSIGNMENT ABOUT THE TAXATION LAW

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION LAW1
Table of Contents
Part A:........................................................................................................................................2
Issues:.....................................................................................................................................2
Rule:.......................................................................................................................................2
Conclusion:............................................................................................................................4
Part B..........................................................................................................................................5
References:...............................................................................................................................14

TAXATION LAW2
Part A:
Issues:
Will the taxpayer be held as Australian occupier inside the meaning of “sec 6 (1)
ITAA 1936” either for entire income year or a part of the income year?
Rule:
An “Australian resident” or “resident of Australia” within “sec 6 (1) ITAA 1936”
signifies a person separately from the establishment that lives in Australia and contains a
person that has their “domicile in Australia” (Norbury, 2019). Nevertheless a person might
be held as foreign occupant if the commissioner is satisfied that the person’s home is out of
Australia. For the tax purpose under “sec 6 (1) ITAA 1936” there are four different test for
individuals to be held as “Australian resident “.
1. “Resides Test”
2. “Domicile Test”
3. “183-Days Test”
4. “Superannuation Test”
Resides Test:
A person will be considered resident of Australia if they dwell on a perpetual basis or
for the considerable amount of time. Accordingly under “TR 98/17” relevant factors such as
it involves the intention of presence in Australia, taxpayer’s societal and living arrangements
is considered important (Blissenden & Kenny, 2019). In “IRC v Lysaght (1928)” the
taxpayer was held to be dweller of UK in spite of having a home in Ireland.

TAXATION LAW3
Domicile Test:
An individual is an “Australian resident” if their home is in Australia. A person will
be held foreign occupant if they are able to satisfy the commissioner that they have set up
home outside Australia. relevant factors considered under “IT 2650” says that whether a
person has an enduring home outside Australia is reliant on whether the taxpayer has
established home out of Australia (Lam, 2018). In “FCT v Applegate (1979)” the taxpayer
was held to be having “fixed place of residence” outside Australia even though he returned to
Australia following his overseas stay.
183-days Test:
An individual is an Australian resident if they are found to be staying in Australia for
six months or more either constantly or intermittently.
Commonwealth Superannuation Test:
A person is an Australian dweller if they are eligible participant of “commonwealth
superannuation fund”.
Application:
Resides Tests:
Despite that Racheal has residential home in Australia where her husband and child
lives, this is not sufficient to consider her resident for the entire or part of 2019. Referring to
“IRC v Lysaght (1928)” this test is not met because Rachel was not existent in Australia for a
substantial length of time in 2019 and proposes to go back to Canada to set her family.