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MA613 Taxation Law | Melbourne Institute of Technology

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Melbourne Institute of Technology

   

Added on  2019-10-30

MA613 Taxation Law | Melbourne Institute of Technology

   

Melbourne Institute of Technology

   Added on 2019-10-30

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Student’s Name:TAX LAW
MA613 Taxation Law | Melbourne Institute of Technology_1
Table of ContentsAnswer to Question No.1......................................................................................................................1Answer to Question 2............................................................................................................................6References.............................................................................................................................................8
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Answer to Question No.1Issue: From the background of the scenario it is understood that Mos. Jenny was a resident ofHonking who initially being offered for temporary business travel to Australia in order to givesuggestions to the former residents of Honking who are settled in Melbourne, Sydney, and Brisbaneduring April 2016. She went to visit all the three cities and to complete the training by next threemonths but the employer further asked her to extend her stay in Australia for nine more months.Further on July, she leases serviced executive apartment for the tenure of nine months till she stays inSydney. Also, Jenny travels once a week to meet clients outside Sydney. Hence the issue vests to thefact that if Ms Jenny can be considered as the resident of Australia for taxation purpose or not.[ CITATION Int17 \l 16393 ]Rules: The understanding of an Australia or foreign resident for taxation purpose need to beunderstood with the help of the Rules by the national taxation authorities of Australia. The rule saysas under:a.If one leaves Australia temporarily and do not set up in another country permanently, thenoneself will be continued to be an Australian resident for taxation purpose. The intention isthe key factor which decides the residency status further. Even with short span of time anindividual can be considered as the resident if carries the intention to stay back in Australiab.If an individual is visiting Australia and he is working and living in a location and has takenample steps to make Australia as his home, then he should be considered as an Australiaresident. As it be seen that if somebody is working and staying there it means that he ispermanently residing there and seeing a long term perspective. Employment tenure is yetanother factor. An employee can be sent to visit Australia for work and may extend beyondthe prescribed limit of 183days in an income year but again the intent of keeping theemployee again becomes the driving factor to decide the residential status of Australia.[ CITATION ato17 \l 16393 ]
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c.If an individual is visiting Australia and for most of the time he is travelling across differentlocations of Australia, then he will be considered as the foreign resident only. It means that heis not thinking for a long term perspective and is not trying to settle. She went to visit all thethree cities and to complete the training by next three months but the employer further askedher to extend her stay in Australia for nine more months. So she had the intention.d.For the sake of better understanding, the “resides test” is done which is the primary test of taxfor residency of Australia. In case the reside test is not passed out, the individual is classifiedas resident of Australia provided the any one of the following statutory criteria is satisfied:1.183 days test: if an individual is present for more than half of the financial year whethercontinuously or with irregular travelling, he can be considered having a constructiveresidency in Australia unless it can be proved that the usual place of adobe is outsideAustralia and have no intent to stay back in Australia.2.Other factors which are a healthy decision maker are as follows :a.Social and living arrangement: The living arrangement decides whether the resident willbe staying there or notb.Intention to stay back: The staying back intention is important.c.Marital Status: If somebody is married then the case is different.d.Employment tenuree.Maintenance and location of assetsf.Physical presence in Australia: the physical presence is important to describe theresidency.g.Frequency and Duration of visit: The duration of visit is very important as it’s theduration that determines the residency. [ CITATION ato171 \l 16393 ]The details of the other rime factors are outlined as under:a.Social and living arrangement: This is yet another degree of understanding to know aboutthe social and living arrangement of an individual in Australia. If the same reflects the
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