Taxation Law

Running head: TAXATION LAW
Taxation Law
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1TAXATION LAW
Table of Contents
Introduction:...............................................................................................................................2
Residency:..................................................................................................................................2
Double Taxation Agreement (DTA)..........................................................................................5
International tax Legislation: India and Australia DTA:...........................................................6
Suitable Tax Jurisdiction:...........................................................................................................6
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

2TAXATION LAW
Introduction:
The area relating to international taxation has been shaped by the rapid globalization
that creates an effect on the trade and capital flows. Persons are now easily capable of
moving the provision of their occupation capital from one dominion to another and business
are now able to increase their trade interest and transactions out of Australia as well
(Blackstone & Christian, 2014). The most vital reason for taking account the essentials
international tax is to mainly understand when either the taxpayer or the income falls inside
the jurisdiction of Australia and how such kind of claims will be able to interact with the tax
rules of the other nations.
Whether a taxpayer or the amount is regarded as the subject of tax in Australia it is
dependent on whether or not an individual taxpayer is observed as the occupant of Australia
for levying tax whether or not the income has been sourced in Australia. When the taxpayer
is observed as the dweller of Australia for the purpose of income tax, they are considered
taxable as income from all the sources (Grange et al., 2014). Nevertheless, when the taxpayer
is regarded as non-resident of Australia they are usually held taxable for income from income
that are sourced in Australia.
Residency:
With respect to the “section 6-5 (2), ITAA 1997”, the chargeable earnings of the
Australian occupant covers the ordinary earnings that is resulting from each sources.
Correspondingly, “section 6-10 (4)” explains that the chargeable earnings of the Australian
occupant covers the earnings from all the bases. While for the overseas inhabitant, “section
6-5 (3)(a)” contains the taxable earnings as the ordinary proceeds that is derived from the
Australian bases (Jover-Ledesma, 2014). Correspondingly, “section 6-10 (5)(a)” comprises
of the statutory income that are sourced in Australia of the overseas resident. Ordinary