Taxation Law

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Assessment 1 ACCT20023 - Australian Taxation Law Term 3, 2013 Contents PART A. 3 PART B. 6 1. Gross Salary – Banyule City Council 6 2. Reportable Fringe Benefits [Motor Vehicle] – Banyule City Council 7 3. Motor Vehicle Allowance – Banyule City Council 7 4. Gift of expensive wine from ratepayer of Banyule City Council in appreciation for solving a planning permit issue 7 5. Gift of a golf club from a tax client as a birthday present 7 6. Net proceeds from business – Tax advice given to private clients 7 7. Hobby earnings from garage sales at his home 8 8. Sale of household goods on the internet 8 9. Gross Capital Gains from selling a jewellery piece 8 10. Gross Capital Proceeds from sale of shares in Eastfarmers Ltd 9…show more content…
It is clearly mentioned in this assessment that the couple did not stayed in Australia for more than one-half of the fiscal years 2014 and 2015. The conclusion is that they are considered foreign residents for Australia tax purposes during the time they have being abroad. During the period they sold their home property and resigned from their jobs in Paris and went on holidays in Europe they are entitled to a tax offset of foreign tax (Div 770 of ITAA 1997) if they return for at least half of an income year to Australia. But only in the case they are still paying taxes overseas, the reason for that is to avoid double taxation. The last statutory test to be applied before finally concluding John and Susan’s residency for tax purposes is the Superannuation test. In Baker v FCT [2012] AATA 168 it was held that “member of a superannuation scheme” includes an inactive member where the taxpayer is on leave without pay. This is the case when the couple quit their full-time jobs in Australia to leave overseas for an undetermined period. Word count: 464 TIMOTHY: In this case, to determine whether John and Susan are residents of Australia for tax purpose, the relevant rules of residency test that is set out in Section 6(1) of ITAA 1936 must be applied. Under this section there are four separate tests and it consists of 1 common law & 3 statutory tests, but according to the facts
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