Taxation Law Questions 2022

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

TAXATION LAW1
Table of Contents
Answer to question 1:.................................................................................................................3
Part A:........................................................................................................................................3
Issues:.....................................................................................................................................3
Rule:.......................................................................................................................................3
Application:............................................................................................................................5
Conclusion:............................................................................................................................6
Answer to Part B:.......................................................................................................................7
Issues:.....................................................................................................................................7
Rule:.......................................................................................................................................7
Application:............................................................................................................................8
Conclusion:............................................................................................................................8
Case Study 2: Part A:.................................................................................................................9
Issues:.....................................................................................................................................9
Rule:.......................................................................................................................................9
Application:............................................................................................................................9
Conclusion:..........................................................................................................................10
Case Study Three.....................................................................................................................10
Issues:...................................................................................................................................10
Rule:.....................................................................................................................................10
Application:..........................................................................................................................11

TAXATION LAW2
Conclusion:..........................................................................................................................13
References:...............................................................................................................................14

TAXATION LAW3
Answer to question 1:
Part A:
Issues:
Will Rachel be held as Australian resident within the definition of “section 6 (1),
ITAA 1936” for the applicable income year.
Rule:
As stated in “taxation ruling of TR 98/17” the tax commissioner states that the
ordinary meaning of the term “resides” under the definition of resident is provided within the
“subsection 6 (1), ITAA 1936” (Norbury 2019). The ruling is generally implemented on
those people that comes to Australia as the migrant, workers, teachers with pre-arranged
service agreements.
As explained in “sec 6 (1), ITAA 1997” an Australian resident means a person that
resides in Australia and has permanent place of residence in Australia unless the
commissioner is content that the taxpayer has the perpetual home outside Australia and do
not have any intent of living in Australia (Harding and Scott 2015). The definition of “sec 6
(1), ITAA 1997” provides four alternative test. These are as follows;
a. The Resides Test
b. The Domicile Test
c. The 183-Day Test
d. The commonwealth superannuation fund test
The Resides Test:
The word “reside” here means to live on permanent basis or for significant time period
(Jones 2018). This test requires relevant considerations such as;