Taxation
LWB364
INTRODUCTION TO TAXATION LAW SEMESTER 1, 2011 LINA TERRESA BUI
1 Lina Terresa Bui
RESIDENCE
2 Lina Terresa Bui
STATE THE ISSUE
The issue which arises on the facts is whether the [taxpayer] is a resident for tax purposes.
BACKGROUND
The general jurisdictional rules provide: Residents are assessed on their ordinary income and statutory income from all sources (ss 6-5(2), 6-10(4) ITAA97) Foreign residents are assessed on their ordinary income and statutory income from Australian sources (ss 6-5(3)(a), 610(5)(a) ITAA97).
AUSTRALIAN RESIDENTS
The assessable income of an Australian resident includes the ordinary income derived by the taxpayer, directly or indirectly, form all sources, whether in or out of Australia, during the income year (ITAA 97 s 6-5(2)). Assessable income also includes statutory income (ITAA s 6-10). Therefore, if [person] is a resident taxpayer of Australia, they will be assessed on all sources, whether in Australia or elsewhere (ITAA 97 s 6-5(2)).
NON-RESIDENT AUSTRALIANS
A non-Australian resident is taxed on: Ordinary income derived directly or indirectly from all Australian sources during the income year (ITAA 1997 s 6-5(3)(a)); Other ordinary income that a provision includes in your assessable income for the income year on a basis other than having an Australian source (ITAA 1997 s 6-5(3)(b)); Statutory income derived from all Australian sources (ITAA 1997 s 6-10(5)(a)); Other statutory income that a provision includes in your assessable income for the income year on a basis other than having an Australian source (ITAA 1997 s 6-10(5)(b)).
3 Lina Terresa Bui
IS THE TAXPAYER AN AUSTRALIAN RESIDENT?
The residence of a taxpayer is determined from year to tear (s 4-10 ITAA97). Australian resident means a person who is an Australian resident under the ITAA 1936 (ITAA97 s 995). A resident or resident of Australia is a person, other than a company, who resides in Australia (s 6(1) ITAA36). TESTS
INTRODUCTION TO TAXATION LAW SEMESTER 1, 2011 LINA TERRESA BUI
1 Lina Terresa Bui
RESIDENCE
2 Lina Terresa Bui
STATE THE ISSUE
The issue which arises on the facts is whether the [taxpayer] is a resident for tax purposes.
BACKGROUND
The general jurisdictional rules provide: Residents are assessed on their ordinary income and statutory income from all sources (ss 6-5(2), 6-10(4) ITAA97) Foreign residents are assessed on their ordinary income and statutory income from Australian sources (ss 6-5(3)(a), 610(5)(a) ITAA97).
AUSTRALIAN RESIDENTS
The assessable income of an Australian resident includes the ordinary income derived by the taxpayer, directly or indirectly, form all sources, whether in or out of Australia, during the income year (ITAA 97 s 6-5(2)). Assessable income also includes statutory income (ITAA s 6-10). Therefore, if [person] is a resident taxpayer of Australia, they will be assessed on all sources, whether in Australia or elsewhere (ITAA 97 s 6-5(2)).
NON-RESIDENT AUSTRALIANS
A non-Australian resident is taxed on: Ordinary income derived directly or indirectly from all Australian sources during the income year (ITAA 1997 s 6-5(3)(a)); Other ordinary income that a provision includes in your assessable income for the income year on a basis other than having an Australian source (ITAA 1997 s 6-5(3)(b)); Statutory income derived from all Australian sources (ITAA 1997 s 6-10(5)(a)); Other statutory income that a provision includes in your assessable income for the income year on a basis other than having an Australian source (ITAA 1997 s 6-10(5)(b)).
3 Lina Terresa Bui
IS THE TAXPAYER AN AUSTRALIAN RESIDENT?
The residence of a taxpayer is determined from year to tear (s 4-10 ITAA97). Australian resident means a person who is an Australian resident under the ITAA 1936 (ITAA97 s 995). A resident or resident of Australia is a person, other than a company, who resides in Australia (s 6(1) ITAA36). TESTS