Taxation Law - Assignment Sample
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Murdoch University
Added on 2020-05-11
Taxation Law - Assignment Sample
Murdoch University
Added on 2020-05-11
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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
TAXATION LAW1Table of ContentsAnswer to question 1:.................................................................................................................2Answer to (I):.............................................................................................................................2Introduction:...............................................................................................................................2The domicile test:.......................................................................................................................3The 183-day test:........................................................................................................................3Superannuation test:...................................................................................................................4Conclusion:................................................................................................................................5Answer to answer (II):...............................................................................................................5Answer to question 2:.................................................................................................................6Answer to (I):.............................................................................................................................6Benefit derived from Salary and Superannuation:.....................................................................6Payment of School fees for children:.........................................................................................7Travelling expenditure:..............................................................................................................7Cost incurred in Membership:....................................................................................................8Car Fringe Benefit:.....................................................................................................................8Conclusion:................................................................................................................................9Answer to (II):............................................................................................................................9Reference List:.........................................................................................................................11
TAXATION LAW2Answer to question 1:Answer to (I): Introduction:The existing case study is concerned with the ascertainment of the residential status ofDaniel for the purpose of taxation. It is evidently understood from the current case study it isnoticed that Daniel is employed with the Mining Capital Corporation and resided inMalaysia. However, he was provided the opportunity of growing in Australia for the purposeof his employment. The term “resident” and “resident of Australia” is defined under the“subsection 6 (1) of the ITAA 1936” (Pinto, 2013). The manner in which an individual organizes their domestic and economic state ofmatters as the portion of their life becomes an important aspect in ascertaining the status ofresidency. An individual is regarded as the Australian resident who has been residing inAustralia or has been essentially been present in Australia either unceasingly or intermittentlyfor no less than half of the income year except the commissioner is content that individualpermanent place of residence is outside Australian and does not intends to take up thehabitation in Australia.The “income tax ruling of IT 2607” is aimed at establishing the with the objective ofdefining the residency status for the purpose of income tax for a person entering in Australia(Robin, 2017). To determine the residential status of Daniel the following test has beenperformed to establish whether or not he is resident of Australia for the taxation purpose; a.The domicile test b.The 183 day test c.The commonwealth superannuation test
TAXATION LAW3The domicile test: Domicile can be defined as the legal concept that has been defined under the“Domicile Act 1982”. According to the rules of common law an individual acquires thedomicile by birth of their origin representing a nation as their permanent place of abode.However, the rules is subjected to certain kind of exceptions (Barkoczy et al., 2016). Theexception to the rules defines that a person in accordance of their own choice in anothercountry or by the procedure of law. As obvious from the existing reading of Daniel, it isnoticed that Daniel decided to apply for the permanent visa of residing in Australia followingthe return of their son from US to Perth. According to the common law stated under “section 10 of the Domicile Act 1982” thepurpose of the individual to obtain the residence of their choice in a nation, which the personintends to make their home indefinitely (Tran-Nam & Walpole, 2016). In order to determinethe domicile of an individual it is necessary to understand the intention of the person inaccordance with subsection 6 (1) where an intention intends to make their home indefinitely. As held in the case of “Henderson v. Henderson(1965) 1 All E.R. 179” the intentionof an individual should be in accordance of acquiring domicile in a nation of their own choice(Coleman & Sadiq, 2013). Similarly, in the present case study of Daniel it can be stated thathe will be considered as the Australian resident under the Domicile Act 1982 since heintended to stay in Australia by applying permanent visa. Citing the reference of Bell v.Kennedy (1868) it can be stated that the intention of Denial is in accordance of acquiring thedomicile of his choice in a nation where he intends to make his home indefinitely in thatnation.
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