Taxation and Related Cases
TABLE OF CONTENTS
INTRODUCTION 2
PART 1 – INDIVIDUAL’S TAX RESIDENCY AND TAX ASSESSMENT 3
ADVICE TO MR. BASIL ON TAX POSITION AND THE ASSESSABILITY 5
PART – 2 ADVISE TO KUMAR 9
CONCLUSION 11
REFERANCE LIST 12
INTRODUCTION
The issue in the first case is sit out about the Tax Residency of overseas employee working in Australia and Assessing the Taxable income and Tax liability in regards to Income Tax laws in Australia. It provides insides about Australian Taxation System and Common law cases effects on determination of Taxable income and deductions to different types of income.
The second case is based on taxability of Income and deductions arise from the transactions related to property and its maintenance. It gives importance to individuals’ general savings strategies and how they can get tax offsets and Capital Gains benefits in tax. It also gives the idea about properties contributes to total income and which types of deductions can be claim as tax offsets.
The whole assignment is concentrated on the individuals’ tax accessibility and different types of Tax offsets can be claim by the individual.
PART 1 – INDIVIDUAL’S TAX RESIDENCY AND TAX ASSESSMENT
According to Income Tax Assessment Act 1936, Section 6(a) gives the definition of Residency of individual with any one of three tests to pass to be Australian Tax Resident. The definition determines resident of Australia means, A. A person who resides in Australia and includes a person, i. Whose domicile is in Australia, unless the commissioner is satisfied that his permanent place of abode is outside Australia ii. Who has actually been in Australia, continuously or intermediately, during more than one half of the year of income, unless the commissioner is satisfied that his permanent place of abode is outside Australia and that he does not intend to take up residence in Australia.
Mr. Basil has to evaluate on test given. As his usual domicile is England
INTRODUCTION 2
PART 1 – INDIVIDUAL’S TAX RESIDENCY AND TAX ASSESSMENT 3
ADVICE TO MR. BASIL ON TAX POSITION AND THE ASSESSABILITY 5
PART – 2 ADVISE TO KUMAR 9
CONCLUSION 11
REFERANCE LIST 12
INTRODUCTION
The issue in the first case is sit out about the Tax Residency of overseas employee working in Australia and Assessing the Taxable income and Tax liability in regards to Income Tax laws in Australia. It provides insides about Australian Taxation System and Common law cases effects on determination of Taxable income and deductions to different types of income.
The second case is based on taxability of Income and deductions arise from the transactions related to property and its maintenance. It gives importance to individuals’ general savings strategies and how they can get tax offsets and Capital Gains benefits in tax. It also gives the idea about properties contributes to total income and which types of deductions can be claim as tax offsets.
The whole assignment is concentrated on the individuals’ tax accessibility and different types of Tax offsets can be claim by the individual.
PART 1 – INDIVIDUAL’S TAX RESIDENCY AND TAX ASSESSMENT
According to Income Tax Assessment Act 1936, Section 6(a) gives the definition of Residency of individual with any one of three tests to pass to be Australian Tax Resident. The definition determines resident of Australia means, A. A person who resides in Australia and includes a person, i. Whose domicile is in Australia, unless the commissioner is satisfied that his permanent place of abode is outside Australia ii. Who has actually been in Australia, continuously or intermediately, during more than one half of the year of income, unless the commissioner is satisfied that his permanent place of abode is outside Australia and that he does not intend to take up residence in Australia.
Mr. Basil has to evaluate on test given. As his usual domicile is England