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Case Study on Taxation Law in Australia

   

Added on  2020-04-13

6 Pages928 Words71 Views
Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID

TAXATION LAW1Table of ContentsCase 2:........................................................................................................................................2Reference List:...........................................................................................................................5

TAXATION LAW2Case 2: An individual who is a non-resident of Australia can be paid or credit frankeddividends or unfranked dividends from the companies that are located in Australia. However,under such circumstances they are taxed in a different manner from the resident shareholders.If a resident company of Australia pays dividend to the foreign resident the unfranked portionof the each of those payments will be subjected to final withholding tax (Robin 2017). Asstated by the Australian taxation office an overseas resident can be individual, company,partnership, trust or the superfund. The case study of Eliza introduces the scenario of taxconsequences for associated with the transactions that has been incurred by her in the currentincome year. The case study brings forward an evidence that Eliza additionally received rentalincome from the lease of her Australian residency. The Australian taxation office has statedthat dividends are generally subjected to taxation depending upon the residential status of therecipient (Woellner 2013). The present situation bought forward in the case study states thatEliza received a fully franked dividend from the Global AIH which is considered as theAustralian organization. An Australian resident company that has decided to join the imputation system ofAustralia might credit the franked dividend to the shareholder (Coleman and Sadiq 2013). Asnoticed in the current study, Eliza received an entirely franked dividend since the entireamount of the dividend carries franking credit. Since Eliza has moved out of Australia for aperiod of five years and as a result she will be considered to be a non-resident of Australia. As a general rule, if an individual is non-resident of Australia, the franked portion ofthe dividends received by a person or credited will be subjected to exemption from theAustralian income tax and withholding taxes (Morgan et al., 2013). Eliza being the non-

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