Taxation Law

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

1TAXATION LAW
Table of Contents
Part 1:..................................................................................................................................... 2
Summary of key legal issues:.............................................................................................2
Summary of relevant law:...................................................................................................2
Application of law to the given facts in case:.......................................................................3
Opinion on case’s practical impacts:...................................................................................3
Part 2:..................................................................................................................................... 4
Issues:................................................................................................................................ 4
Laws:.................................................................................................................................. 4
Application:......................................................................................................................... 4
Conclusion:......................................................................................................................... 5
References............................................................................................................................. 6

2TAXATION LAW
Part 1:
Summary of key legal issues:
The court in the recent decision made in “Harding v Commissioner of Taxation
(2018)” found that Mr Harding was the Australian resident that lived and worked overseas
for numerous periods, however emphasising on March 2009 to February 2015, Mr Harding
was treated as the Australian resident within the extended definition of the resident stated
under “section 6, ITAA 1936” for the year under consideration (2011)1.
Summary of relevant law:
The resides test:
The term “reside” signifies to dwell on permanent basis for the considerable time
period. For the purpose of taxation an individual that is dwelling in Australia will be viewed as
Australian occupant irrespective of the residency, nationality or their location of fixed home.
As held in “FCT v Applegate (1979)” the court adopted the meaning of reside to state that
dwelling signifies to live permanently or for the considerable period of time, to have a settled
abode or to live in at the particular place2. Accordingly, whether a person is treated to be
residing in Australia is reliant on the facts of their specific situations.
Domicile Test:
An individual’s home represents the lawful relation with the nation. An individual’s
domicile is the place where an individual has their permanent home. According to section
6(1), an individual would be treated as the Australian resident if they are having the domicile
in Australia except they can prove that they have established their permanent place of
habitat out of Australia. In “Applegate v FCT (1979)” the court stated that an individual’s
intention to live permanently, instead their stay is temporary in nature it is vital but not the
conclusive factor to be taken into consideration3. The factors consist of the intended as well
as the actual length of the overseas stay, whether any kind of fixed home has been
established out of Australia and extent of an individual’s relation with a place in Australia.
1 "INCOME TAX ASSESSMENT ACT 1936", Austlii.Edu.Au (Webpage, 2019)
<http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/>
2 Sadiq, Kerrie et al, Principles Of Taxation Law 2019
3 Woellner, Robin, et al. "Australian Taxation Law 2016." OUP Catalogue (2016).