International Tax Fundamental : Report

INTERNATIONAL TAX
FUNDAMENTAL

Table of Contents
QUESTION A.....................................................................................................1
Residential status of Dr. Jones......................................................................1
QUESTION B.....................................................................................................2
Calculation of assessable income for the year 2015/16, 2016/17 and
2017/18.........................................................................................................2
SUPERANNUATION QUESTION 1......................................................................3
REFERENCES....................................................................................................4

QUESTION A
Residential status of Dr. Jones
According to Australian Income Tax Act, deciding residency status of
an individual is the first step before tax computation. As per the resides test,
if taxpayer resides in Australia, then he or she will be recognized as an
Australian resident for the purpose of tax and in such situation, there is no
need to apply other tests. However, if the condition does not satisfied, then,
residency status of the member will identified through applying statutory
tests (Woellner and et.al.,2016). In the given case, Dr. Alice who is an
Australian geneticist accepted 2-year fellowship at London university
beginning from 1st July 2015. She also accepted Geneo Co.’s new work
conditions to work remotely from London on part-time basis. She leased her
Melbourne Apartment, sold her car and moved London on 1st July 2015. Thus,
the condition of resides test does not fulfill as she is not residing in Australian
during the period of 1st July 2015 to 31st June 2018.Domicile Test: Section 6(1)(a)(i) states that if taxpayer has a
permanent residency home inside Australia, then, will be treated as an
Australian citizen or vice-versa. IT 2650 also mention permanent residency
intention as well as migrating to Australia. A legal case of FCT V Applegate
1979, taxpayer does not found resident in Australia due to the absence of
intention of permanently residing (Cox, 2017). Referring the case, although
when Dr. Alice moved to London to join university for minimum of 2 years,
rented out the house in Melbourne, and sold her car. Thus, she found with an
intention of residing outside Australia. Moreover,on 1st January 2016, she
accepted London university offer to have a full time research position and
permanent residency visa sponsorship that clearly states that she accepted
permanent residency in London, hence domicile test condition does not
satisfied even though she owned a house in Australia.
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