The Taxation Law Assessment 2022

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

TAXATION LAW1
Table of Contents
Part A:........................................................................................................................................2
Issues:.....................................................................................................................................2
Rule:.......................................................................................................................................2
Application:............................................................................................................................4
Conclusion:............................................................................................................................5
Part B..........................................................................................................................................6
References:...............................................................................................................................17

TAXATION LAW2
Part A:
Issues:
The present issue is based on ascertaining whether or not the taxpayer will be
considered as an Australian dweller either for whole or part of the year under “sec 6 (1)
ITAA 1936”?
Rule:
Resident within “sec 6 (1) ITAA 1936” involves a person apart from company that lives
in Australia and includes a person that has domicile in Australia only when it is established to
tax commissioner that the taxpayer’s permanent abode is out of Australia1. The definition
establishes four test to consider a person an Australian resident, these are;
1. Resides Test
2. Domicile Test
3. 183-Days Test
4. Superannuation Test
Resides Test:
Commonly a person is held residing in Australia that lives as well as work in
Australia and make their home. Factors taken into consideration include the intention or
purpose of presence, frequency, regularity and duration of visits. It also includes family ties
and maintenance of assets2.
1 Norbury, Michael. "Mr Harding's residence reconsidered." Taxation in Australia 53.9
(2019): 497.
2 Blissenden, Michael, and Paul Kenny. "Residence tests for individuals: Impact of the
Harding decision." Taxation in Australia 54.6 (2019): 302.

TAXATION LAW3
Domicile Test:
A person will be treated as Australian dweller if their domicile is in Australia unless
the taxpayer sets up permanent home out of Australia. Important factors include the intention
and time of overseas visit, existence of home set up in overseas, social and economic
relations. In “Federal Commissioner of Taxation v Applegate (1979)” the taxation
commissioner in an argument stated that the domicile of the taxpayer was Australian which
he failed to satisfy the requirement that his “permanent place of dwelling is out of
Australia”3. The high court stated that permanent do not imply forever and it is evaluated
every year.
The 183-day Test:
Under this test a person will be held as tax resident of Australia when they are present
physically in Australia in any which way such as constantly or intermittently for greater than
six months of income year.
Superannuation Test:
Applicable in respect of the commonwealth superannuation funds where a member
has a superannuation fund.
Application:
Resides Tests:
Racheal even though has the residential home in Australia where her husband and her
child resides, these factor is not viewed significant enough to treat her resident either for
3 Jones, Daryl. "Complexity of tax residency attracts review." Taxation in Australia 53.6
(2018): 296.