logo

BLO2206 - Assignment, Taxation Law and Practice

11 Pages2598 Words99 Views
   

VICTORIA UNIVERSITY

   

Australian Taxation Law (BLO2206)

   

Added on  2020-03-07

About This Document

In the BLO2206 Assignment, we will discuss Taxation Law, in this document, we also cover the determination of the Tax Consequences for the part of salary derived by an Australian resident working overseas and leaving Australia for work, and the present study is based on ascertainment of the taxable income of Paul who had a personal business of Golf Instructor.

BLO2206 - Assignment, Taxation Law and Practice

   

VICTORIA UNIVERSITY

   

Australian Taxation Law (BLO2206)

   Added on 2020-03-07

ShareRelated Documents
Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
BLO2206 - Assignment, Taxation Law and Practice_1
1TAXATION LAWTable of ContentsAnswer to question 1:.................................................................................................................2Issues:.........................................................................................................................................2Legislation:.................................................................................................................................2Application:................................................................................................................................2Conclusion:................................................................................................................................5Answer to question2:..................................................................................................................5Issues:.........................................................................................................................................5Legislation:.................................................................................................................................5Application:................................................................................................................................6Conclusion:................................................................................................................................8Reference List:...........................................................................................................................9
BLO2206 - Assignment, Taxation Law and Practice_2
2TAXATION LAWAnswer to question 1: Issues: The current issues is based on the determination of the tax consequences for the partof salary derived by an Australian resident working overseas and leaving Australia for thepurpose of work. Legislation: a.Taxation rulings of IT 2650b.Subsection 6 (1) of income tax assessment act 1936c.F.C. of T. v. Applegate(1979) 9 ATR 899d.Henderson v. Henderson [1965] 1 All E.R.179e.F.C. of T. v. Jenkins 82 ATC 4098Application: The present situation takes into the considerations the salary derived by Can Robynfrom her overseas employment as a co-ordinator in Calcutta University. The position ofworking as the co-coordinator was as long as she remained to work or as long as she wantedthe course continued to exist. According to the taxation rulings of IT 2650 it proposes toprovide guidelines in determining whether the person who leaves Australia to live overseason temporary overseas work assignment ceases to be the resident of Australia for the purposeof income tax during their overseas stay (Barkoczy 2016). The term resident and resident of Australia is defined under the subsection 6 (1) ofincome tax assessment act 1936. As far as the individual is concerned a person whose
BLO2206 - Assignment, Taxation Law and Practice_3
3TAXATION LAWdomicile is in Australia unless the commissioner is satisfied that his or her permanent placeof abode is outside of Australia (Snape and Souza 2016). Furthermore, as defined undersubsection 6 (1) a person who has been in Australia either constantly or in breaks for no lessthan half of the income year unless the commissioner is satisfied that an individual’s personplace of abode is Australia and that he or she does not have any intentions of taking up theresidence in Australia. As evident from the current case study Can Robyn is an Australian resident undersubsection 6 (1) of the ITAA 1936 since her permanent domicile is in Australia and has beenin Australia for more than half of the income year prior to leaving Australia (Braithwaite2017). Furthermore, the rulings concludes by stating in general language that the intendedand the actual length of stay in the overseas country along with any intention of returning toAustralia at some point of time (Cao et al. 2015). From the case study it was found that CanRobyn owned a flat in Melbourne and did not abandoned her residence or place of abodewhere she resided. Instead, the flat owned by her was mortgaged and received part of heremployment income in her Australian bank account. As held in the case of Henderson v. Henderson [1965] 1 All E.R.179 an individualretains the domicile of the of their own origin unless the person acquires the domicile of theirown choice in another country or by the operation of law (Saad 2014). In determining thedomicile of an individual for the purpose of definition resident under Subsection 6 (1) it isvital to take into the consideration a person’s intention as to the country in which he or sheintends to make their home indefinitely (Taylor and Richardson 2013). Hence, a an individualhaving an Australian domicile will retain the Australian citizenship if the person intends toreturn to Australia on a evidently foreseen and reasonably anticipated contingency which isafter the end of her employment. As evident form the current situation that Can Robyn hasmaintained her flat in Melbourne located in Australia. She is also intended to return to
BLO2206 - Assignment, Taxation Law and Practice_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
BLO2206 | Taxation Law & Practice
|11
|2084
|50

BLO2206 - Taxation Law and Practice Assessment
|13
|2242
|192

BLO2206 Taxation Law and Practice: Assignment
|11
|2191
|57

Taxation Law: Assessable Income and Resident Status
|19
|4385
|71

Tax Case Study and Analysis
|18
|5298
|195

Tax Residency and Taxation of Income: A Case Analysis of Mr. Tom
|3
|1125
|121