Taxation Law

Running head: TAXATION
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION
Table of Contents
Issues:.........................................................................................................................................2
Discussion by using tax legislation and case laws:....................................................................2
Test 1: Resides in Australia:..................................................................................................3
Test 2: Domicile Test:............................................................................................................3
Test 3: 183-day test................................................................................................................4
Test-4: superannuation test:...................................................................................................4
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

2TAXATION
Issues:
The subject matter involved in the present case comprises the determination of
residency and source of taxation for Ms Sierra and the root from where the income is derived.
The issues also admit whether the taxpayer will let off for income generated from the sources
that are out of Australia and the activities of horse breeding contracted amounts.
Discussion by using tax legislation and case laws:
Conferring to the “section 6-1 (1), ITAA 1936” or “section 995-1 of the ITAA 1997”
the residence of Australia includes the persons who are staying in Australia and the
individuals who has the residence in Australia, unless the taxation officer clarifies that the
person has the residence outside of Australia (Woellner et al., 2016). According to the
“section 995-1, ITAA 1997” Australian resident substances that a person who has been
staying in Australia, permanently or intermittently for a six month in an income year, except
the persons have the residency away from Australia and they have no intention to be an
Australian residency as per the taxation commissioner.
There are four different tests for the description of dweller of Australia where the last
test evidently an objective. It is discernible in the present condition of Sierra that she is
employed in a luxury liner that voyages the Mediterranean Sea and has her own apartment in
Australia. On account of being away from home, the apartment has been given on rent to her
uncle and she used to stay there whenever she returns to Australia. In the present income
year, she stays for eight days in that apartment.
The following tests are conducted to test the residence status of sierra: