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TAXATION 3 TAXATION Taxation Authors Note

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Added on  2020-03-16

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Taxation 3 TAXATION Taxation Authors Note: Answer to Question 1 3 i) 3 ii) 6 iii) 7 Answer to Question 2 8 a) 8 i) 8 Travelling expenses 9 ii) 12 b) 13 i) 13 ii) 13 iii) 14 Reference 15 Answer to Question 1 i) The primary issue of this question is to determine the residential status for the year 2016-2017 of Daniel who is an employee of Mining Capital Corporation, an America based Multinational Company, whose permanent place of stay

TAXATION 3 TAXATION Taxation Authors Note

   Added on 2020-03-16

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Running head: TAXATIONTaxationName of the Student:Name of the University:Authors Note:
TAXATION 3 TAXATION Taxation Authors Note_1
2TAXATIONTable of ContentsAnswer to Question 1......................................................................................................................3i).......................................................................................................................................................3ii)......................................................................................................................................................6iii).....................................................................................................................................................7Answer to Question 2......................................................................................................................8a)......................................................................................................................................................8i)...................................................................................................................................................8Travelling expenses.........................................................................................................................9ii)................................................................................................................................................12b)....................................................................................................................................................13i).................................................................................................................................................13ii)................................................................................................................................................13iii)...............................................................................................................................................14Reference.......................................................................................................................................15
TAXATION 3 TAXATION Taxation Authors Note_2
3TAXATIONAnswer to Question 1i)The primary issue of this question is to determine the residential status for the year 2016-2017 of Daniel who is an employee of Mining Capital Corporation, an America basedMultinational Company, whose permanent place of stay is in Malaysia but came in Australia forthe purpose of employment1.In Australia, an individual is liable to pay tax is the person is a resident of Australia.Thus, it is very much essential to determine the residential status of an individual in order tocompute his or her taxable income or tax liability. Taxation Ruling TR 98/17 defines themeaning of resident that states that this rule is applicable to those individuals that falls under thefollowing category2:Individuals who are migrantsIndividuals associated with teaching professionStudents who came to Australia for the purpose of educationIndividuals who comes to visit AustraliaEmployees or working profession of any foreign country who come to Australia foremployment purpose in Australia.1 Howard, Steven J., Ross Gordon, and Sandra C. Jones. "Australian alcohol policy 2001–2013 and implications forpublic health."BMC public health14, no. 1 (2014): 848.2 Saad, Natrah. "Tax knowledge, tax complexity and tax compliance: Taxpayers’ view."Procedia-Social andBehavioral Sciences109 (2014): 1069-1075.
TAXATION 3 TAXATION Taxation Authors Note_3
4TAXATIONHowever, the above-mentioned category of individual in order to be declared as a resident ofAustralia is subject to fulfilment of certain provisions or conditions.In order to assess the residential status of an individual in Australia, there are four testbased on which the residential status of an individual is declared3. The four test or methods arelisted below:1.Primary or Ordinary Test2.Domicile Test3.Superannuation Test4.183 Days TestIf the individual who is undergoing the test is satisfying any one of the following test then he/she shall be eligible to be declared as a resident of Australia. Each of the following tests arediscussed in brief below:1.Primary Test or Ordinary Test.If the case is such that the individual is born in Australia and he/ she resides in Australiasince the time of birth then as per instructions provided under Australian Taxation Office theindividual is considered as an Australian resident by default and the person does not need toapply for any further test or what so ever4.3 Cao, Liangyue, Amanda Hosking, Michael Kouparitsas, Damian Mullaly, Xavier Rimmer, Qun Shi, Wallace Stark,and Sebastian Wende. "Understanding the economy-wide efficiency and incidence of major Australiantaxes."Treasury WP1 (2015).4 Becker, Johannes, E. Reimer, and A. Rust.Klaus Vogel on Double Taxation Conventions. Kluwer LawInternational, 2015.
TAXATION 3 TAXATION Taxation Authors Note_4

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