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Sample Assignment on Taxation Law (docs)

   

Added on  2021-06-16

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TAXATION LAWSTUDENT ID:[Pick the date]
Sample Assignment on Taxation Law (docs)_1

IssueThe key objective in the given case is to offer advice to Jacinta with regards to taxassessability of the amounts that are received by her in 2016/17 and 2017/18Determination of tax residencyThe determination of tax residency is imperative owing to the different tax treatment beingextended to Australian tax residents and foreign tax residents. In accordance with s.6-5(2), forAustralian tax residents, income derived from Australian as well foreign sources would betaxable. However, as per s. 6-(5)(3), for foreign tax residents, only income derived fromAustralian sources during the assessment year would be considered (Barkoczy, 2017). Thevarious tests for determining tax residency are highlighted in s.6(1) ITAA 1936 along withtax ruling TR 98/17. The relevant tests are as follows (Gilders et. al., 2016).Residency Test – Applicable for foreign residents183 day Test – Applicable for foreign residentsDomicile Test – Applicable for Australian residentsSuperannuation Test – Applicable for government servants serving abroadConsidering that Jacinta has an Australian domicile, thus the only valid test for her would bedomicile test. Domicile testFor satisfying this test for tax residency, it is imperative that the following two conditionsmust be fulfilled (CCH, 2013).The underlying taxpayer must be Australian domicile holdersThe permanent abode of the taxpayer must be located on Australian territory eventhough for professional reasons the taxpayer may be staying out. This is inaccordance with Levene v, I.R.C. (1928) A.C.2017 caseDetermining the domicile is rather easy and objective but the same cannot be said aboutlocation of permanent abode especially when the given taxpayer has intentions to return backto Australia. The various factors that the Tax Commissioner considers in such cases areoutlined in IT 2650 and includes the following factors (Sadiq et. al., 2016).Taxpayer’s intent to return to Australia
Sample Assignment on Taxation Law (docs)_2

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