Taxation Implications for Auditors Duties

In: Business and Management

Submitted By jamal786
Words 1567
Pages 7
| TAXATION LAW | ASSIGNMENT | | | GROUP MEMBERS: | Jamal Ahmed Khan S0243702Ijaz Ahmad S0206099 | | | SUBMITTED TO:Michael Gallagher | DATE:6th Jan, 2014 | | |



Part A
To find the residency status of John and Susan for the time when they were living overseas. The definition of “resident” in s 6(1) of ITAA 1936 contains four tests to determine whether an individual is a resident of Australia for taxation purpose. i. Common Law Test ii. Domicile Test iii. 183-day Test iv. Superannuation Test
These cases will apply to determine that whether John and Susan are residents of Australia for tax purposes for the period they left Australia to their eventual return to Australia.
Common Law Test:
It is the primary test to determine whether individual is a resident of Australia is the “residence according to ordinary concepts” test. There are two examples are mentioned which explains “reside” as to dwell permanently or for a considerable time; have a one’s abode for a time and other example which explains it as “to dwell permanently or for considerable time; to have one’s settled or usual abode, to live in or at particular place. It is according to the taxation ruling TR 98/17.
There are also some considerable factors for determining the residency for taxation purpose. a. Physical presence b. Regularity and duration of visits c. The person’s nationality d. Purpose if visits e. Family business and social ties
As per these factors and common law test John and Susan are not a resident of Australia and common law test is not applicable in this case.
Domicile Test:
It is the 1st statutory test which also provides the reliable information as per residence of Australia. Domicile is a legal concept according to the domicile Act 1982 (Cth) and…...

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