The Income Tax Law : Australia

2291 WordsSep 21, 201410 Pages
INCOME TAX LAW Name: MEHRAN MUZAFFAR Candidate Number: 30111746 Professor: SATHIASUNDAR VIJAYASANKAR Date Due: 18 Sep 2014 PART A REQUIRED 1 Introduction 1. Income tax is generally payable annually by residents or non residents who are receiving income in Australia provided the income was derived, earned or accrued while living in Australia. The returns earned from a business operated partly in or out of the country i.e. Australia are considered to have accrued in totality from Australia. All the income earned from investments, sale of personal property or any other income is subject to taxation. (Renton, 2005) The residents of Australia are basically taxed on their global income and from all sources but temporary residents mostly have their income from foreign exempted. Foreign residents are basically taxed on the income whose source is n Australia for example on the income they have earned while working in Australia. The residents of Australia pay lower rates of taxes than their foreign counterparts. (Centrelink website, 2013) For tax purposes one is considered an Australian resident if one has lived in Australia entirely or has come to live in Australia permanently or if one is an Australian but travelling abroad temporarily and has not built or bought a permanent home in a different country or out of Australia. The other situations refer to students who have travelled to Australia to

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