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
Answer to Part A:.......................................................................................................................2
Answer to Part B:.......................................................................................................................4
Answer A:..............................................................................................................................4
Answer B:...............................................................................................................................5
References:.................................................................................................................................6

2TAXATION LAW
Answer to Part A:
Requirement 1: Residence & Source
As per “sec. 6 (1) ITAA 36” definition of Australian resident include person that has their
domicile in Australia and the tax authorities are content that the taxpayer does not has the
fixed place dwelling outside Australia (Woellner et al., 2016). Accordingly, “sec. 6 (1) ITAA
36” lay down four alternate test to ascertain the residency position of an individual. This
includes;
a. Resides Test
b. Domicile Test
c. 183-day test
d. Commonwealth superannuation fund test
As per the resides test a person is an Australian resident if they are present physically in
Australia for significant period. Relevant consideration includes the intent of presence,
employment ties, location of assets and living arrangements.
While the domicile test generally involves determining if the person is domiciled in
Australia even though they are living overseas. Relevant cases include “FCT v Applegate
(1979)” where the taxpayer was found to have the permanent place of residence outside
Australia (Barkoczy, 2016).
The 183-day test involves considering whether the person has been living
continuously or in breaks in Australia for half part of income year except when the tax
authority is content that the usual dwelling is in foreign nation (Murray et al., 2018). The
commonwealth test applies to individuals that are the member of common wealth fund.