Issues in Canada and Australia in Case of Residential Status : Report
Added on -2020-07-22
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Tax Consultation
Table of ContentsINTRODUCTION...........................................................................................................................1Main Body.......................................................................................................................................1Legislation advice on taxation residency status..........................................................................1Calculation of taxable income of Jack Jones..............................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
Index of TablesTable 1: Calculation of taxable income...........................................................................................4
INTRODUCTIONTaxation is a compulsory amount collected by the government. Residential status is animportant aspect which is required to be considered while assessing the taxable income of theperson (Hogg, Magee, and Li, 2013). An individual is considered to be resident based on thecertain conditions that are laid downs by the tax department of that country. The report discussesrelevant conditions issued by Canada and Australia in case of residential status. It furtherdiscusses the case laws that are related to the given case scenario of jack Jones. In the end,taxable income of Jack will be calculated considering him as a resident of Australia.Main BodyAs per the given case scenario, Jack Jones owns visa to live in Australia from 2ndDecember 2012 to 30th June 2016. He came in contract with Peterson Marine Industries Pty Ltdfor which he arrived in the country. The company got leased to an American company with thename of Samsak marine whose vessel was used to conduct oil exploration from Canada. Itcompelled the client to shift to Canada. Therefore, he joined Samsak and left Australia on 1stAugust 2015 to settle down in Canada. He worked for 9 months there and then terminates thecontract and returned to Australia on 1st May 2016. Then he remained in Australia upto rest ofthe income tax year, that is, upto 30th June 2016. Jack was able to lived in the accommodation provided by the company when he used towork in Samsak for the first three months. He then lived with his sister where he used to live inchildhood. It shows that Jack was born and brought in Canada. He also has permanent house inVancouver Canada. It shows that he was already having residence ship of Canada once when heused to live in the country.Jack was in Australia and in Canada both ion the tax year. Hence, ii is difficult to decidehis residential status. It is important to analyse the legal rule issued by both the countries withrespect to residential status and reach to a conclusion. It is an important aspect as on the basis ofresidential status, taxable income for the person is calculated.Legislation advice on taxation residency statusResidential status is an important aspect which is to be considered while calculatingtaxable income of a person (Hopkins, 2016). It has not important that the person must bedomicile of that nation. He can be resident of a particular country for a certain tax year as well.Conditions for resident of Australia1
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