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
Introduction:...........................................................................................................................2
Residence:..............................................................................................................................2
Application of facts:...............................................................................................................3
Sources of Income:.................................................................................................................4
Conclusion:............................................................................................................................5
Answer to question 2:.................................................................................................................5
References:.................................................................................................................................7

2TAXATION LAW
Answer to question 1:
Introduction:
The most important reason for considering residency position is to understand if the
person is falling under the Australian tax jurisdiction and determining whether the amount is
sourced in Australia. The Australian resident are taxed from all sources of income.
Residence:
According in “section 995-1, ITAA 1997” “Australian resident” implies that an
individual is treated as the dweller of Australia for the purpose of “ITAA 1936”. An
Australian inhabitant is described in “section 6 (1), ITAA 1997” as someone that is residing
in Australia and someone who is having the permanent dwelling place outside Australia
(Barkoczy 2014). The description of “resident” given under “section 6 (1), ITAA 1997” lay
down four alternate test:
a. Common law test
b. Domicile Test
c. 183-day test
d. Superannuation fund test
Resides Test:
The resides test is first and foremost test of residency. Under this test a person is an
occupant of Australia for tax purpose if the person is actually living in Australia. It does not
consider the citizenship position or nationality. This test implies dwelling permanently or for
considerable time.
Domicile Test: