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TAX 10 10 Tax Authors Note

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Added on  2020-02-23

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The 6-5 of the Income Tax Assessment Act 1997 provides the meaning of ordinary income; The section 6-10 of the Income Tax Assessment Act 1997 provides the meaning of statutory income; The Taxation Ruling TR 98/17proides the rules relating to the determination of the residential status.

TAX 10 10 Tax Authors Note

   Added on 2020-02-23

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Running head: TAXTaxName of the Student:Name of the University:Authors Note:
TAX 10 10 Tax Authors Note_1
1TAXTable of ContentsAnswer to Question 1......................................................................................................................2Issue.............................................................................................................................................2Laws.............................................................................................................................................2Application......................................................................................................................................3Conclusion...................................................................................................................................7Answer to Question 2......................................................................................................................7Reference.........................................................................................................................................9
TAX 10 10 Tax Authors Note_2
2TAXAnswer to Question 1IssueJenny is a resident of Hong Kong but as her profession involves travelling from one placeto another thus she came to Australia regarding her profession. Now the issue is that whetherJenny who is staying in Australia for the last few months will be considered as a resident ofAustralia or not for the purpose of taxation.LawsThe laws or acts or rulings or judgements that can be used to establish the residentialstatus are as follows:The provisions of the Income Tax Assessment Act 1936 is applied in this case.The Section 6-1of the Income Tax Assessment Act 1936 provides the definition onresidential status and it is applied in the discussion.The Section 995-1 of the Income Tax Assessment Act 1936 is applied in this case as itprovided the definition of residents;The section 4-1 of the Income Tax Assessment Act 1997 states who are required to paytax.The section 4-15 of the Income Tax Assessment Act 1997 describes the manner ofcalculation of taxable income.
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3TAXThe 6-5 of the Income Tax Assessment Act 1997 provides the meaning of ordinaryincome;The section 6-10 of the Income Tax Assessment Act 1997 provides the meaning ofstatutory income;The Taxation Ruling TR 98/17proides the rules relating to the determination of theresidential status.ApplicationAccording to the Income Tax Assessment Act 1936 and 1997, it administers theresidential status of an individual and whether the person is liable to pay tax in Australia or not.Not only this, an important role in determining the liability to pay income tax of the taxpayers inAustralia has also been played by Taxation Rulings, explanatory guidelines mentioned inAustralian Taxation Office and various case judgments (Barkoczy 2016). It is mentioned undersection 4-1 of the Income Tax Assessment Act 1997 that a company or an individual or anyother entity is obliged to pay tax on the income generated by them that is taxable. Whereas onthe other hand, as per section 4-15 of the Income Tax Assessment Act 1997, the income whichis taxable must be considered by decreasing the deductions from the assessable income which arepermitted under taxation. The income as per the ordinary income under section 6-5 of the ITAA1997 and in accordance to the income which are statutory under section 6-10 of the Income TaxAssessment Act 1997 is being classified by this act. It is mentioned under section 6-5(2) of theITAA 1997 and section 6-10(4) of the ITAA 1997 that if, the person who is taxpayer and liableto pay tax is a resident of Australia then in such cases his/ her income from all the sources will beconsidered as taxable income at the time of assessing the tax liability of that person. However, if
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