Advanced Australian International Taxation

Running head: ADVANCED AUSTRALIAN INTERNATIONAL TAXATION
Advanced Australian International Taxation
Name of the Student:
Name of the University:
Authors Note:

1ADVANCED AUSTRALIAN INTERNATIONAL TAXATION
Contents
Introduction:....................................................................................................................................2
Issues:..............................................................................................................................................2
Rules:...............................................................................................................................................2
Application:.....................................................................................................................................6
Conclusion:....................................................................................................................................15
References:....................................................................................................................................17

2ADVANCED AUSTRALIAN INTERNATIONAL TAXATION
Introduction:
In Australia, the income tax provisions are governed by the Income Tax Assessment Act
1997 (ITAA). Taking into consideration the provisions of ITAA a detailed discussion has been
made in the document to help the readers to evaluate the tax implications for different persons
mentioned in the case study.
Issues:
The issue here is to determine the tax implications on different persons as per the Income Tax
Assessment Act 1997. As per the facts provided in the case the tax implications of the following
persons shall be explained and discussed in the document below:
1. Kross.
2. Benny.
3. B Trust.
4. Bobo.
5. Lenny.
6. Jenni.
7. Bennys mum.
Rules:
Firstly it is important to evaluate the residential status of a person in Australia to determine
his tax liability in the country as per the Income Tax Assessment Act 1997. As per residential
status rules of ITAA a person in case of an individual, is said to be an Australian resident for
income tax purposes as per the ITAA 1997 if he or she resides in Australia. Even if the person
does not reside in Australia the person will still be a resident for the income tax purposes only if
any or more of the following conditions are satisfied1.
1 Bruce, Max. "Multinational Anti-Avoidance Law (MAAL) and Pt IVA—a Critical Analysis of
the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 (Cth) and

3ADVANCED AUSTRALIAN INTERNATIONAL TAXATION
I. Domiciled in Australia, i.e. have a permanent home in the country.
II. 183 days test: Have lived in Australia for more than183 days in total in last financial year
with or without breaks.
III. Superannuation test. According to the superannuation test a person will be an Australian
resident even without satisfying any of the above conditions if he is an employee of
Australian Government working for the country in any place outside Australia.
In case of a corporation, it shall be considered as an Australian resident if it has its registered
office situated in the country. Even if the corporation does not have its registered head office
situated in the country, it shall still be considered as Australian resident if any of the following
conditions are satisfied:
I. The management of the entity is in Australia or,
II. The entity is controlled by the managers and directors within the country.
The reason it is important to evaluate the residential status of an individual is because the
liability to income tax in Australia would be dependent largely to the extent of a person’s
residential status in the country for the tax purpose2. A person resident of Australia for tax
purposes as per the ITAA is liable to pay income tax on all of his income whereas a non-resident
Australia is only liable to be assessed for the income earned or received or both in the country.
Tax implications and taxable income:
Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 (Cth) and
Comparison with General Anti-Avoidance Provisions." (2018).
2 McGregor-Lowndes, Myles, and Marie Crittall. An examination of tax-deductible donations
made by individual Australian taxpayers in 2014-15. Australian Centre for Philanthropy and
Nonprofit Studies, Queensland University of Technology, 2017.