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
Part A:........................................................................................................................................2
Letter of Advice.........................................................................................................................2
Part B:.........................................................................................................................................5
Net Income of Partnership:........................................................................................................5
Distribution Statement:..............................................................................................................6
References:.................................................................................................................................7

2TAXATION LAW
Part A:
Letter of Advice
To Jack
From: ABC Tax Consultancy Agency
Date: 9th May 2019
Dear Jack
The present letter strives to provide you with the advice regarding your residency
status based on the residency test that is applied in your case. The letter seeks to provide you
with the information that a person is only held resident for tax purpose when the person has
the domicile in here in Australia. As explained in the “section 6 (1), ITAA 1997” an
individual is considered as resident of Australia if they are existent in Australian and their
domicile is in Australia. The definition requires an individual to be satisfy only one test in
order to be held as Australian resident (King 2016). To decide whether you are Australian
resident we will be applying four relevant test based on the information furnished by you.
Resides Test:
The rest test is better known as the ordinary concept test. It means living in Australia
on permanent basis for the significant time period. The decision made in “IRC v Lysaght
(1928)” took into the account the necessary factors particularly the frequency, regularity and
duration of visit by the individual who visits Australia (Miller and Oats 2016). It also
comprises of maintaining the residence in Australia for the taxpayers use.
With respect to the information that is acquired we found that you have moved to
Saudi Arabia for the work purpose. The determination of the residency is entirely based on