What is Tax Law? | Becoming a Tax Lawyer | Assignment

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

TAXATION LAW1
Table of Contents
Part B:.........................................................................................................................................2
Requirement 1: If Catherine is a Resident.............................................................................2
Requirement 2: If Catherine is a Non-Resident.....................................................................3
Part C:.........................................................................................................................................3
Issues:.....................................................................................................................................3
Laws:......................................................................................................................................3
Application:............................................................................................................................5
Conclusion:............................................................................................................................6
References:.................................................................................................................................7

TAXATION LAW2
Part B:
Requirement 1: If Catherine is a Resident
The sources of income are mainly important for those that are non-residents. Citing
“Nathan v FCT (1918)” the salary from employment in Wales does not has source in
Australia and it will not be contained within in her taxable earnings (Miller and Oats 2016).
Catherine also received employment income that was paid to her by her Australian employers
for work in Australia. The salary income is sourced in Australia and will be counted in her
assessable income for tax purpose.
She also received a prize of $250 for winning the annual pie-contest. Referring to
“Moore v Griffiths (1972)”, the prize winning of $250 is non-taxable since it is a simple
prize winning (Barkoczy 2016). While the interest of $50 earned from the Australian bank
account has a source in Australia. Mentioning the case of “FCT v Spotless Services (1995)”
the interest income will be contained within in Catherine taxable earnings. While the interest
received from Wales bank account will be counted in her assessable returns as income from
foreign sources however she will be entitled to a tax offset of $20 for withholding tax paid.
Finally, Catherine reports the sale of excessive clothing, sleeping bag and other personal
items on eBay. As Catherine is not carrying on any online selling business, the receipt will
not be included in her assessable income.