Taxation Law Assignment: Residency Status, Rental Income and Land Subdivision

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

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Table of Contents
Answer to question 1:.................................................................................................................2
Issues:.....................................................................................................................................2
Rule:.......................................................................................................................................2
Application:............................................................................................................................4
Conclusion:............................................................................................................................5
Answer to question 2:.................................................................................................................5
Issues:.....................................................................................................................................5
Rule:.......................................................................................................................................5
Application:............................................................................................................................6
Conclusion:............................................................................................................................7
Answer to question 3:.................................................................................................................7
Issues:.....................................................................................................................................7
Rule:.......................................................................................................................................7
Application:............................................................................................................................8
Conclusion:............................................................................................................................9
Answer to question 4:.................................................................................................................9
References:...............................................................................................................................11

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Answer to question 1:
Issues:
Will the taxpayer will be treated as the Australian dweller during the year 2017/18
and 2018/19 inside the denotation of “section 6 (1), ITAA 1936”?
Rule:
Referring to “s995-1, ITAA 1997” the resident of Australia implies that an individual
separately from the corporation that are residing in Australia and comprises of those persons
that have home in Australia, except when the officer of taxation is understood that an
individual has their fixed place of residence out of Australia (Woellner et al., 2016). An
individual would be individually held as an Australian, either on the constant basis or the
intermittent basis for greater than six months of an income year excluding when the tax
officer is very much pleased that the taxpayer has the common place of home outside the
Australia and that the taxpayer does not have any intent of living or residing in Australia.
As per the “section 995-1, ITAA 1997” there are four types of test for determining the
residency position of a taxpayer in Australia (Barkoczy, 2016). This includes the following;
1. Resides Test
2. Domicile Test
3. 183-days Test
4. Commonwealth superannuation Test
Resides Test:
The word here resides means that to live in Australia for the significant time period. It
is mainly associated with the problem of fact and degree. This mainly relies on the
circumstances of the event. Evidently under the “TR 98/17” it explains that a person’s

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behaviour should involves the intention of presence in Australia, family and business or
employment relations, the social as well as living arrangements and the total time of
taxpayer’s existence in Australia. As held in “Joachim v FCT (2002)” the physical existence
as well as the intention would coincide for majority of the time however there may be few
individuals that are usually treated as living at home (Freudenberg et al., 2017). The main test
is, whether the person has undertaken regularity of association with the place along with the
purpose of coming back to that place and the attitude that the place remains to be their home.
Domicile Test:
As per this test, a taxpayer is held as the Australian inhabitant given their dwelling is
in Australia, excluding the tax official is contented that the taxpayer has the fixed dwelling
outside the Australia. As per “IT 2650” the views of commissioner are reliant on whether a
taxpayer has the perpetual place of dwelling out of Australia. This includes intended as the
definite length of a person’s visit in foreign nation. Establishing home out of Australia and
the continuity of a person’s existence in the foreign state (Oishi et al., 2018). Citing “FCT v
Applegate (1979)” the law court in its decision clarified that permanent hardly suggests
everlasting and its objectivity is measured each year. The taxpayer here was noticed to have
the fixed residence outside Australia.
183-Days Test:
Under this test an individual is Australian occupant provided that he or she has been
in Australia for greater than six months of income year, excluding when it is provided to
commissioner that the taxpayer has fixed residence outside Australia.
Commonwealth Superannuation Test:
This is applied on those people that are the member of superannuation fund and they
are deemed to be occupants of Australia for tax purpose.