BLO2206 Australian Taxation Law

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Added on 2019-10-31

BLO2206 Australian Taxation Law

Added on 2019-10-31

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Running head: TAXATION LAWTaxation LawName of the Student:Name of the University:Author’s Note:

TAXATION LAW2Table of ContentsIntroduction:....................................................................................................................................3Question 1: Detecting whether Jenny is resident of Australia or not..............................................3Question 2:Mentioning about the lump sum amount of $400,000 and the salary of $100,000....10Conclusion:....................................................................................................................................11References:....................................................................................................................................12

TAXATION LAW3Introduction:The report mainly focuses in identifying the residential condition of Jenny in both 2015-2016 and 2016-2017 fiscal years. Therefore, the overall staying condition and decisions that ismade by Jenny in Australia during the period of the state is evaluated, which could help indetermining whether she is a resident of Australia or not. This determination of the overallresidential condition is mainly essential, as Australian taxation authority takes relevant tax fromresidents residing in Australia. Furthermore, lump sum amount is also evaluated, which couldhelp in determining whether the income is assessable income or not.Question 1: Detecting whether Jenny is resident of Australia or notThe situation mainly arises when relevant residential condition of Jenny needs to beevaluated, which is essential for identifying her current residential condition. Furthermore, Jennywas staying hotels for 3 months, after which she rented house near the office for joining itAustralian division. Moreover, under section 995-1 of ITAA 1997, Australian residence thatresides in the country are liable to pay the relevant Income Tax on the income generated in thecurrent fiscal year1. According to the Australian taxation authority, residential condition of anindividual could be identified in three distinct ways. This determination of the residentialcondition is essential for imposing the relevant Income Tax, which needs to be imposed onindividuals working and residing in Australia. There are different types of residential test1Ato.gov.au. (2017).Work out your tax residency. [online] Available at: https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/ [Accessed 12 Sep.2017].

TAXATION LAW4mentioned Under Residency test section 6(1) of ITAA 1936, which could help in identifyingresidential status of Jenny in Australia2.Relevant facts of Jenny could be analysed, which could help in identifying her residentialcondition.Jenny's singer and has no dependentJenny is originally working in Hong KongJenny has temporarily travelled in Australia for 3 months staying in different hotelsJenny has entered in Australia on 25th April 2016For the work related purpose Jenny has been travelling to different cities in AustraliaCurrently Jenny has accepted for working in Australia for 9 monthsJenny has rented a flat near the office for the purpose are staying in Australia for 9 monthsJenny has been transferring all the personal belongings to AustraliaJenny has a limited travel plan, where She goes out every week from Sydney due to workrelated measureResidential Test for fiscal year 2015-2016Ordinary residence test:Ordinary residence test is mainly considered to be one of the first primary tests that needto be conducted for determining residential condition of an individual. With the help of ordinaryresidence test, it is determined whether an individual is liable to pay all the relevant Income Tax2Mytaxresidency.com. (2015).Australian Tax Residency: a rare win for the taxpayer` |MyTaxResidency.com. [online] Available at: http://mytaxresidency.com/Recent-ruling-provides-Australian-expats-with-hope-for-non-residency-claims [Accessed 12 Sep. 2017].

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