Australian Tax Residency for Individuals
Added on 2020-02-18
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Running head: TAXATION LAWTaxation LawName of the Student:Name of the University:Author’s Note:
TAXATION LAW2Table of ContentsIntroduction:....................................................................................................................................3Question 1: Identifying whether Jenny is resident of Australia or not............................................3Question 2:Discussing whether both the $400,000 and the $100,000 receipts are assessableincome..............................................................................................................................................9Conclusion:....................................................................................................................................11References:....................................................................................................................................12
TAXATION LAW3Introduction:The evaluation of case of Jenny mainly helps in determining her Residential condition inAustralia, as she started from April 2016 and was expected to stay there for more than 9months.However, the stay arrangements were firstly in motels, whereas after 3 months sherented a place in Australia for continuing her work as demanded by the company. This mainlyindicates that there were two income tax years that needs to be evaluated for Jenny to determinewhether she is liable to pay tax in Australia. The determination o the lump sum amount is alsoconducted in the assessment, which could help in deriving the assessable income of theindividual.Question 1: Identifying whether Jenny is resident of Australia or notThere are relevant issues that needs to be evaluated before considering whether Jenny's aresident of Australia or not, which directly in identifies whether she is liable to pay income tax inAustralia. It is also identified that Jenny has teeth onto different fiscal years on which herresidential condition in Australia needs to be evaluated. Under section 995-1 of ITAA 1997Australian residents is considered the individuals who resides in Australia and earns relativeincome in the country1. There are different types of rules that need to be considered while testingme residential status of an individual. Under Residency test section 6(1) of ITAA 1936, relevanttest that needs to be used for identifying residential condition of an individual are depicted.There are relevant facts that need to be identified from the evaluation of Jenny’s case study.These factors are depicted as follows.Jenny was originally working in Hong Kong1 "Residency - The Resides Test."Ato.gov.au. N. p., 2017. Web. 11 Sept. 2017.
TAXATION LAW4She is single and has no dependentShe lives with our parents in Hong Kong as assumedShe is temporary travel to Australia for 3 monthsShe has entered Australia on 25th April 2016She is travelling from one City to another and staying in hotels and have no permanentresidenceShe accepts off for the 9 month job in SydneyFrom July she leases an apartment near your workplaceCurrent home base is SydneyShe should all the relevant personal belongings to AustraliaLimit travel is being conducted once a week where she goes out of SydneyResidential Test of first three months or for fiscal year 2015-2016Ordinary residence test:-This is the primary stress that is conducted by individuals to identify its condition inAustralia and determine whether he/she is liable to pay income tax in Australia. If any individualreside in Australia then he/she is considered to be an Australian resident and no further test areneeded to be conducted. In the current situation Jenny is not considered to be a resident ofAustralia, as she was residing in Singapore before entering into Australia. The first three monthsJenny was only travelling from one place to another and living in motel, which indicated noresidential condition2.Therefore, the first three months cannot be considered to be a residentialphase, where Jenny needs not to pay any kind of tax to the Australian government.2"Australian Tax Residency: A Rare Win For The Taxpayer` |Mytaxresidency.Com."Mytaxresidency.com. N. p., 2015. Web. 11 Sept. 2017.
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