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 question 1:.................................................................................................................2
Answer to 2:...........................................................................................................................4
Answer to question 2:.................................................................................................................5
References:.................................................................................................................................6

2TAXATION LAW
Answer to question 1:
As denoted in the “section 6-5 (2)” taxes are imposed on the Australian occupant for their
ordinary and statutory earnings which is earned by them either directly or indirectly from all
the sources whether they are within or outside of Australia. In accordance with the “section 6
(1), ITAA 1936” an individual is held to be dweller of Australia provided that they are living
here and ATO is satisfied that he or she does not intend to take up residency in abroad ( Sadiq
2019). The description explained in “section 6 (1), ITAA 1997” means that to be recognized
Australian resident any one of four test should be met;
a. The Reside Test
b. Domicile Test
c. 183 Day Test
d. Superannuation fund
Resides Test:
A person’s behaviour determines the residency position and includes the time spend
in Australian or span of physical presence (Murray et al. 2018). There are some specific
factors which requires due weightage such as location or maintenance of assets and
arrangement of living forms the vital in determining residency status.
Domicile Test:
As per this test an individual is said to be Australian dweller if their fixed dwelling or
residence is in Australia. A person obtains the abode of their father by birth or obtains the
residence of their choice in alternative state. The law court in “FCT v Applegate (1979)”
gave its verdict that the taxpayer had the Australian domicile and failed to satisfy the
condition that permanent location of his abode was in foreign (Morgan, Mortimer and Pinto