tax notes

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Contents TAX LEG: ITAA1936 [eg. S6(1)], ITAA1997 [eg. S6-5], FBTAA 1986, GST Act 1999. Topic 2 – Jurisdiction to Tax taxable payable Tax Payable (s4-10 ITAA1997)= (Taxable income * Tax Rate) – Tax Offsets (Tax/Financial Year = I July – 30 June) – Income tax payable on a year-by-year basis s3-5 ITAA97. Taxable income (s 4-15 ITAA) = Assessable Income less Deductions Assessable Income (s6-1) = Ordinary income (s6-5) and Statutory income (s6-10) but not Exempt income (s6-15). Assessable income includes (s6-1): Residents: All ordinary income and statutory income of an Australian resident taxpayer derived directly or indirectly from all sources, whether in or out of Australia, during the income year: s6-5(2) & s6-10(4). Foreign…show more content…
Not temporary or transitory. Applegate(1979): Dates important. Less than 2yrs, but intended to be more than 2yrs -> overseas abode sufficiently permanent, not temp/transitory. Jenkins(1982): Overseas for a fixed 3yr period, but maintained a house in Aus. Place of abode overseas (3yrs) permanent enough. Factors to be taken into account (IT 2650) [public ruling] in determining whether there is permanent place of abode outside Aus. Intended and actual stay in foreign country. Duration and continuity of taxpayer’s presence in overseas country (2yrs substantial – guide in ruling). Establishment of a home outside Aus (fixed, more than temp accommodation – eg. Hotels not enough). Residence or place of abode in Aus. The durability of the association with Aus (maintenance of bank a/c, education of children, family ties, notifying govt depts). 183 day test (generally incoming individuals) In TR 98/17, the Commissioner confirms that the ORT is the primary test of residency under legislation. 183 day test considered for completeness as it is not certain that TP is resident. S6(1)(a)(ii): Taxpayer will be treated as a resident if they have been here for 183days or more , continuously or intermittently, unless the commissioner is satisfied that: The person’s usual place of abode is outside Aus AND The person does not intend to take up residence in Aus. Usual place of abode – place you live on a day-to-day basis. In TR 98/17, the Commissioner
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