Taxation Law and Practice Case Study Australian 2022

Taxation Law and Practice

Table of Contents
Introduction................................................................................................................................3
Regulations and provision relating to assessability of taxation of Rod McLean.......................3
Conclusion..................................................................................................................................6
References..................................................................................................................................7

Introduction
The provision of residential status has been provided in subsection 6 (1) of ITAA 1997.
Further, the primary variant to be analysed in order to ascertain the residential status is to
assess whether the individual or organization resides in Australian or not. Para 6 to 13 of
taxation ruling IT2607 provides provision relating to variants which are required to be
assessed to determine residential status in appropriate manner. Present study revolves around
ascertainment of taxation provision of Mr. Rod McLean who resides in Manly and working
as an engineer in company named as Softmicro Ltd. It is US based company. In March 2017,
Rod was temporary posted in RST Ltd, situated in Hong Kong. Thus, provision relating to his
residential status and assessable income has been provided in detail manner for the tax years
2018/19 and 2019/20.
Regulations and provision relating to assessability of
taxation of Rod McLean
Provision relating to residency test
Resides test is the main test implemented to ascertain tax residential status of an individual.
In case an individual an individual resides in Australia, than he or she is deemed to be
Australian resident for taxation purpose. However, in case an individual does not persudes
the provision of resides test than he or she is still considered as Australian resident in case
one of the three specified test are satisfied i.e. Domicile test, 183 day test, common wealth
superannuation test (Domazet, Marjanović, and Stošić, 2018).
Domicile test
In accordance with ATO provision an assessee is considered as Australian resident in case his
or her domicile is in Australia. A domicile can be referred to a place which can be treated as
permanent home by law (Trakman, 2015). It is necessary that the place of abode should be
everlasting, however it could be contrasted in case it is impermanent or transitory place of
abode it could be contrasted.
183 day test