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BLO2206 Taxation Law and Practice: Assignment

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Victoria University | Melbourne Australia

   

Australian Taxation Law (BLO2206)

   

Added on  2020-03-01

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BLO2206 - The following paper is divided into two sections. Each section has an issue and according to which laws are implemented. In this case, the issue is to determine the tax consequences for salary or wages that is derived from leaving Australia for working overseas. In second part the present issue is based on defining the taxable income of the taxpayer which has the personal business of Golf Teacher. 

BLO2206 Taxation Law and Practice: Assignment

   

Victoria University | Melbourne Australia

   

Australian Taxation Law (BLO2206)

   Added on 2020-03-01

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Running head: TAXTaxName of the Student:Name of the university:Authors Note:
BLO2206 Taxation Law and Practice: Assignment_1
TAX1Table of ContentsAnswer to Question 1......................................................................................................................2Issue:................................................................................................................................................2Laws:................................................................................................................................................2Application:.....................................................................................................................................2Conclusion.......................................................................................................................................4Answer to Question 2......................................................................................................................5Issues:..............................................................................................................................................5Application:.....................................................................................................................................6Reference.........................................................................................................................................9
BLO2206 Taxation Law and Practice: Assignment_2
TAX2Answer to Question 1Issue:In this case, the issue is to determine the tax consequences for salary or wages that isderived from leaving Australia for working overseas. Laws:Subsection 6 (1) of income tax assessment act 1936;Taxation rulings of IT 2650Henderson v. Henderson [1965] 1 All E.R.179F.C. of T. v. Applegate(1979) 9 ATR 899F.C. of T. v. Jenkins 82 ATC 4098Application:The report explains the treatment of tax of income that have been derived from workingin an oversea university as a coordinator. The terms of work for the coordinator is that CanRobyn can continue to works as long as he wished or as long as the course existed in the CalcuttaUniversity. The Taxation Ruling IT 2650 provides certain guidelines that is useful in determinewhether an individual leaving Australia for working overseas should be determine as resident ornonresident for the purpose of tax for the time of staying outside Australia1.The section 6(1) of the Income Tax Assessment Act 1936 provides that an individualwhose domicile is in Australia is considered as an Australian resident for the purpose of taxunless the commissioner is satisfied that individual is nonresident for the purpose of tax2. The1 Saad, Natrah. "Tax knowledge, tax complexity and tax compliance: Taxpayers’ view."Procedia-Social andBehavioral Sciences109 (2014): 1069-1075.2 Braithwaite, Valerie, ed.Taxing democracy: Understanding tax avoidance and evasion. Routledge, 2017.
BLO2206 Taxation Law and Practice: Assignment_3
TAX3section provides that an individual staying in Australia continuously for more than 6 month isgenerally regarded as a resident for the purpose of tax. However, if the commissioner is satisfiedthat the individual does not have the intention of residing in Australia in that case the individualwill not be regarded as resident for the purpose of tax. On evaluating the current case under section, 6(1) of the Income tax Assessment Act1936 Can Robyn should be regarded as the resident of Australia as she has stayed in Australiafor more than 6 months before leaving the country for employment overseas3. In addition to thisCan Robyn continued to have the place of residence in Australia and did not sell the flat ofMelbourne. It is assumed that the flat was mortgaged as she paid the mortgage amount from theincome received from employment. The income from employment was received in Australianbank. In the case of Henderson v. Henderson [1965] 1 All E.R.179 it was provided that aperson is taken to have the domicile of the place of origin unless the individual taken a domicilein any other country. In the current case, it can be seen that Can Robyn has continued to maintainthe flat in Melbourne that indicates she has the clear intention to come back to Australia after theemployment with Calcutta University is ceased4. The Taxation Ruling IT 2650 provides that the income received in an Australian bankfor working overseas is taxable. In applying the ruling, the residence of the taxpayer should beconsidered. In the case of F.C. of T. v. Applegate(1979) 9 ATR 899 the most important thing3 Davis, Angela K., David A. Guenther, Linda K. Krull, and Brian M. Williams. "Do socially responsible firms paymore taxes?."The Accounting Review91, no. 1 (2015): 47-68.4 James, S., Sawyer, A., & Wallschutzky, I. (2015). Tax simplification: A review of initiatives in Australia, NewZealand and the United Kingdom.eJournal of Tax Research,13(1), 280.
BLO2206 Taxation Law and Practice: Assignment_4

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