Taxation Law: Assessable Income and Resident Status

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to Scenario 1:................................................................................................................2
Issue:..........................................................................................................................................2
Laws:..........................................................................................................................................2
Application:................................................................................................................................2
Conclusion:................................................................................................................................4
Answer to Scenario 2:................................................................................................................5
Issue:..........................................................................................................................................5
Laws:..........................................................................................................................................5
Application:................................................................................................................................5
Conclusion:................................................................................................................................7
Answer to scenario 3:.................................................................................................................7
Issue:..........................................................................................................................................7
Laws:..........................................................................................................................................7
Application:................................................................................................................................7
Conclusion:................................................................................................................................9
Answer to scenario 4:.................................................................................................................9
Issue:..........................................................................................................................................9
Laws:..........................................................................................................................................9
Application:................................................................................................................................9

2TAXATION LAW
Conclusion:..............................................................................................................................10
Answer to question 2:...............................................................................................................11
Issue:........................................................................................................................................11
Laws:........................................................................................................................................11
Application:..............................................................................................................................11
Conclusion:..............................................................................................................................14
Reference and Bibliographies:.................................................................................................16

3TAXATION LAW
Answer to question 1:
Answer to Scenario 1:
Issue:
The current issue is based on determining whether Kate will be considered as the
Australian resident during her stay in Fiji for the period of three year?
Laws:
a. IT 2650
b. Section 6 (1) of the ITAA 1936
c. Domicile Act 1982
d. “Applegate v Federal Commissioner of Taxation (1979)”
e. “Jenkins v Federal Commissioner of Taxation (1982)”
Application:
The current case study of Kate outlines that Kate was an Australian born and worked
as Teacher in Toowoomba. After having resigned from her job in Toowoomba she joined her
husband Jack who has been working in Fiji University. During the period when she was
outside of Australia Kate maintained her bank account in Australia and had rented out her
home to derive rental income1. The “taxation ruling of 2650” is based on determining
whether an individual permanent place of abode is outside of Australia.
“Section 6 (1) of the ITAA 1936” defines the term resident and resident of Australia.
According to “section 6 (1) of the ITAA 1936” an individual apart from the company who
lives in Australia and includes those people that have their domicile in Australia, unless it is
1 Barkoczy, Stephen, Foundations Of Taxation Law 2014