Taxation Law: Residency Test and Capital Gains Tax

Running head: TAXATION LAW
Taxation Law
Name of the Student
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1TAXATION LAW
Table of Contents
Answer to question 1:.................................................................................................................2
Issue:......................................................................................................................................2
Laws:......................................................................................................................................2
Applications:..........................................................................................................................3
Conclusion:............................................................................................................................4
Answer to question 2:.................................................................................................................4
Issues:.....................................................................................................................................4
Laws:......................................................................................................................................4
Applications:..........................................................................................................................4
Conclusion:............................................................................................................................5
References:.................................................................................................................................6

2TAXATION LAW
Answer to question 1:
Issue:
Will the taxpayer be held as the Australian resident with in the definition stated under
“section 995-1” or under “section 6 (1) of the ITAA 1936” during his absence from
Australia?
Laws:
As per “section 995-1, ITAA 1997” occupant of Australia or Australian resident
refers to the person that have their residence in Australia, excluding the commissioner is
satisfied that personal permanent place of house is out of Australia (Barkoczy, 2014). To
determine the residential status there are certain alternative test.
Resides Test:
The term resides test refers to reside perpetually or for the substantial time period.
The law court in “FCT v Miller (1946)” held that it is necessary to determine the question of
fact and degree (Douglas et al., 2015). The residential status under resides case is largely
reliant on the circumstances of case.
Domicile Test:
Under the Domicile test an individual taxpayer is held as the Australian resident if an
individual has the dwelling in Australia, unless the taxation officer is satisfied that the person
has the enduring place of home out of Australia. Court in “FCT v Applegate (1979)” held
that permanent do not represents perpetual or forever and it is measured objectively every
year (Grange et al., 2014). The intention and original length of a person stay in the foreign
nation is held considerable.