Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
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1TAXATION LAW
Table of Contents
Part A:........................................................................................................................................2
Private and Confidential: Letter of Advice............................................................................2
Part B:.........................................................................................................................................6
Net Income of Partnership:....................................................................................................6
Distribution Statement:..........................................................................................................7
Part C: Video Transcript:...........................................................................................................8
References:.................................................................................................................................9

2TAXATION LAW
Part A:
Private and Confidential: Letter of Advice
To Jack Johnson
From: Roma Tax Consultancy
Date: 6th May 2019
Dear Jack
We have below summarized the opinion in respect of the matters relating to the
residency status. If you feel any facts or assumptions to be incorrect or not as per your
understanding, you can immediately contact us to understand the impact of the advice given.
The advice is based on the tax laws, cases and rulings as we understand their application in
determining your residency status. We have below outlined the responses in relation to each
of the specific events that effects your residency.
Statutory definition:
The word resident implies under “subsection 6 (1), ITAA 1936” that person apart
from the company that are living in Australia and involves the person that has their domicile
in Australia, unless the taxation commissioner is content that his permanent place of
residence is out of Australia (Woellner et al. 2016). It also includes person that has originally
been living in Australia for six months of the income year whether on continuous basis or
intermittently excluding when the commissioner is content that the taxpayer usual abode is
outside Australia and no intention of residing in Australia (Robin and Barkoczy 2019). In
response to your information that is shared we have applied the four relevant test in your
situation. This includes the following;
a. Ordinary concepts test or Resides Test

3TAXATION LAW
b. The Domicile Test
c. The 183-Day Test
d. Superannuation Test
Ordinary concepts Test:
The dictionary meaning explains that to reside here in Australia permanently or for
considerable time. The court in “IRC v Lysaght (1928)” explained that if the person is
visiting Australian, then the frequency, regularity and the duration of visit should be
considered (Barkoczy, 2016). The courts have also considered the factors such as maintaining
the place of home in Australia for use of taxpayers is also relevant. Jack, in your case we
have found that from June 2017 you left Australia for work purpose in Bahrain. You have
sold all the belongings which you held in Australia. Even if you are having the residential
home in Australia and your family is residing there, these factors is not very much
significant. You were also not physically present in Australia for the considerable period of
time in the income year. Though you returned to Bahrain following the short stay in Australia
with the objective of settling with your wife but you cannot be considered as the Australian
resident under the ordinary concept test.
Domicile Test:
To advise you regarding your residency status we have referred to Domicile test as
well. Under the domicile test a person is only considered to be resident of Australia if the
person is having their domicile in Australia (Freudenberg et al. 2017). To determine the
domicile of an individual in accordance with the Domicile Act 1982 an individual’s domicile
of their origin during birth or the domicile of the country of choice is generally considered.
As per the “IT ruling 2650” the taxation commissioner takes into the account numerous
factors whether the person has the permanent place of residence outside Australia (Jones