Case Study On Tax Legislation

1227 Words Feb 1st, 2016 5 Pages
Table of Contents
Case study 1 …………………………………………………….. Page no. 2
Case study 2 …………………………………………………….. Page no. 4
References …………………………………………………….. Page no. 6

Case Study 1
Issue
How will Kit be taxable for his investments and income for the taxation year?
Relevant Legislation
ITAA 1997
Analysis
A person is said to be a tax resident of Australia by any of the four ways1.
a. Primary Test for tax resident status is Residency test. There is no definition of this test in the tax legislation. In the test, resides means to live in a particular place for a considerable amount of time. The behaviour of the person should show that his intention by way of his any act is to live in Australia. It can be by way of the place to live, motive to come to Australia, Family or business relationship ties, Assets located in Australia, etc.
b. Domicile test – When the primary condition could not be fulfilled, other test can be applied. One is of domicile which means that the permanent place of residence should be Australia for tax resident of Australia status.
c. Test of 183 days – It means that a person should be present in Australia for 183 days. Such no. of days can be in running or in part of the tax year.
d. Superannuation Test – This test is applicable to the employees of Australian government working overseas, but their family is residing in Australia. The spouse of such employee and if the child is below 16…
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