Taxation Law Essay

Better Essays

Introduction Taxation law may be described as the body of law that governs liabilities of persons to pay to the government. In this report, I will determine to Jack John’s taxable income during the given income year. So as to give proper legal advice to Jack Jones, I have to take into consideration those issues, determine taxation residency status, determining assessable income for the year and calculating deduction of the year. After all those issues discussed regarding Australian taxation law, it possible proper advice to Jack John accordingly his assessable income and deductions. Taxation residency status According to the taxation law, Australian residents require to assess their income (ordinary and statutory income) which is derived …show more content…

Domicile and permanent place of abode test According to the Domicile Act 1982 and the common law, an individual domicile is determined. The person’s domicile is determined by his or her parents’ domicile. In the case, he owns a house in Vancouver, Canada that he shared with his wife and his child before they come to Australia. Also, he does not have any property in Australia. All those facts indicate that his permanent place of adobe outside of Australia. 183 days test According to the 183 days test, defining whether a individual is started residing in Australia and is not related for a taxpayer is leaving Australia. if an individual has been Australia, irregularly or continuously, during greater than 183 days of the income year, the Commissioner will conclude that his usual place of abode is Australia. In this case, on the 1st of August 2015, he left Australia to work in Canada. Jack worked for 9 months for Samsak in Canada. This means he already stayed over 183 days outside of Australia. Commonwealth superannuation test Under Superannuation Act 1990, if a person is member of superannuation scheme, an individual is Australian resident, or an eligible employee for the purpose of Superannuation Act 1976; or a spouse, or child under 16, of a person covered by s 6(1)(a)(iii). Income Income from personal exertion Rewards for

Get Access
Get Access