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Introduction to Income Tax Law - Doc

   

Added on  2021-02-20

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Introduction to incometax law

Table of ContentsINTRODUCTION ..........................................................................................................................1QUESTION 1...................................................................................................................................1QUESTION 2...................................................................................................................................1QUESTION 3...................................................................................................................................1QUESTION 4...................................................................................................................................1QUESTION 5...................................................................................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4

INTRODUCTION In the term of finance, the tax is defined as the compulsory fees that is levy by thegovernment on specific income, services, activities or financial transactions. Income tax is themost important form of taxation in Australia, which cover the main sources like personalearning, business earning and capital gains (Buchanan, 2017). It is one of the most progressiveapproach of tax system in Australia that demonstrate the more income earned by individual theymore amount of tax needs to be paid. QUESTION 1Section S6-5(2) & S6-10(4) defines the rules relating to all ordinary income and statutoryincome of an ‘Australian Resident’. In the Context of Australian Taxation an individual visitingAustralia and travelling and living at number of places to perform several kind of work isconsider to a foreign resident for tax purpose. The case Federal Commissioner of Taxation v. Applegate, Federal Court of Australia, FullCourt, 29 June 1979 the opinion was made that due to some non-abandoned circumstancesApplegate was not able to establish a permanent place of above in the sense abovementionedoutside the Australia. Considering this he was considered as “Non-resident” and his income willderived from sources outside of Australia (Kenny, Blissenden and Villios, 2015). From the case of Taite, it has been discovered that he live is different location withinAustralia for the purpose of doing various kind of jobs from 1 August 2017 to 30 June 2018(About Foreign Resident, 2019). In search of work he use to live in backpacker hotels and otheraccommodation services that are offered by company. So in case if Taxable Income is Taxable income Tax on this income0 – $90,000 32.5c for each $1$90,001 – $180,000 $29,250 plus 37c for each $1 over $90,000$180,001 and over $62,550 plus 45c for each $1 over $180,000It is the duty of Taite to declare any income that is earned in Australia on Tax returnwhich must includes: Employment IncomeCapital gain on Assets.But as a foreign resident he have following advantages such as: No Tax Free Threshold1

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