Taxation Law: Residency Status, Business Income and Deductions

Running Head: TAXATION LAW
TAXATION LAW
Name of the Student
Name of the University
Author Note

TAXATION LAW1
Table of Contents
Answer to question 1:.................................................................................................................3
Part A:........................................................................................................................................3
Issues:.....................................................................................................................................3
Rule:.......................................................................................................................................3
Application:............................................................................................................................5
Conclusion:............................................................................................................................6
Answer to Part B:.......................................................................................................................7
Issues:.....................................................................................................................................7
Rule:.......................................................................................................................................7
Application:............................................................................................................................8
Conclusion:............................................................................................................................8
Case Study 2: Part A:.................................................................................................................8
Issues:.....................................................................................................................................8
Rule:.......................................................................................................................................9
Application:............................................................................................................................9
Conclusion:............................................................................................................................9
Case Study Three.......................................................................................................................9
Issues:.....................................................................................................................................9
Rule:.......................................................................................................................................9
Application:..........................................................................................................................10

TAXATION LAW2
Conclusion:..........................................................................................................................12
References:...............................................................................................................................13

TAXATION LAW3
Answer to question 1:
Part A:
Issues:
Conferring to the definition of “sec6 (1), ITAA 1936” will Rachel be viewed as an
Australian occupant for the relevant income year.
Rule:
The general sense of the expression “resides” as stated by the tax commissioner in the
“TR 98/17” are the people who has come to Australia as workers, migrants, teachers with
pre-determined work agreements (Woellner et al., 2016). This is stated in the in the
description of dweller in the “subsection 6 (1), ITAA 1936”.
According to “sec 6 (1), ITAA 1997” an Australian occupant is a person who is
residing in Australia with a permanent residence in Australia. The individual will be treated
as an Australian resident unless the officer is not complacent about the taxpayer having a
perpetual house anywhere outside (Barkoczy 2016) Australia and having no meaning of
leaving Australia. There are four alternative test as stated in the definition of “sec 6 (1), ITAA
1997”. These tests are as follows-
a. The Resides Test
b. The Domicile Test
c. The 183-Day Test
d. The Commonwealth Superannuation Fund Test
The Resides Test:
Here the word “reside” means to live on a enduring basis or for a significant period of
time. Relevant considerations are required for this test such as-