Principles of Taxation Law Assignment (document)

sumeet mann
[COMPANY NAME] [Company address]
PRINCIPLES OF TAXATION
LAWS

Principles of Taxation Law
Contents
Question 1................................................................................................................. 2
Answer 1............................................................................................................... 2
Question 2................................................................................................................. 5
Answer 2............................................................................................................... 5
Question 3................................................................................................................. 6
Answer 3............................................................................................................... 6
Bibliography.............................................................................................................. 7
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Principles of Taxation Law
Question 1.
Answer 1.
An individual fall under one of the following categories for tax purposes:
1. Resident of Australia for tax purposes
2. Foreign Resident
3. Temporary Resident
RESIDENT OF AUSTRALIA FOR TAX PURPOSES
A. Resides Test
The person who stays in Australia is considered to be an Australian resident for tax
purposes and does not require to apply any other tests of residency.
Following factors are also used to determine residency status of an individual:
1. Physical presence
2. Intention
3. Purpose
4. Family
5. Employment or business ties
6. Maintenance of assets
7. Location of assets
8. Social arrangement
9. Living arrangement
If a person fails to satisfy the resides test he can still be considered as resident of Australia.
For this he needs to satisfy any one or more of the conditions described below:
B. Domicile Test
A person who has his permanent home (domicile) in Australia and his permanent
abode place is not outside the country then he is considered as a resident of Australia
for tax purpose.
C. 183-Day Test
The people who has arrived in Australia and stayed for more than half of the income
year either continuously or with breaks would be considered as the resident of
Australia for that financial year and would be liable to pay tax1.
D. Commonwealth superannuation test
Commonwealth superannuation test applies to Australian people who works for the
Australian government outside the country/overseas and are the members of CSS
scheme and PSS scheme. In such case, the person, his spouse and children would be
considered as the resident of Australia for tax purposes 2.
1 Organisation for Economic Co-operation and Development, Information on residency for
tax purposes (n.d.), < https://www.oecd.org/tax/automatic-exchange/crs-implementation-
and-assistance/tax-residency/Australia-Residency.pdf>.
2 Jacob Joseph,
Tax return for foreign residents (15 January,2020), finder <
https://www.finder.com.au/australian-resident-for-tax-purposes>.
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