Microsoft Word - TAL305 Taxation Law Assessment One_T3 2020.docx Assessment Brief Business Faculty Taxation Law TAL305 Level 300 Trimester 3 2020 Assessment Brief ASSESSMENT ONE TAL305_T3 2020...

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TABLE OF CONTENTS
Case study 1: Residence and source    2
Case study 2: ordinary income    3
I. Californian Copper Syndicate Ltd v Harris (Surveyor of Taxes) (1904) 5 TC 159    3
II. Scottish Australian Mining Co Ltd v FC of T (1950) 81 CLR 188    4
III. FC of T v Whitfords Beach Pty Ltd (1982) 150 CLR    5
IV. Statham & Anor v FC of T 89 ATC 4070    5
V. Casimaty v FC of T 97 ATC 5135    5
VI. Moana Sand Pty Ltd v FC of T 88 ATC 4897    6
VII. Crow v FC of T 88 ATC 4620    6
VIII. McCurry & Anor v FC of T 98 ATC 4487    6
References    7
Case study 1: Residence and source
The Australians are people who are born in Australia and who are residents of Australia, or people who are permanently resident in Australia and who can stay for any amount of time or forever in Australia. In this case study, Kit may be treated as an Australian resident because he resides permanently in the country. There are some requirements introduced by the Australian government that must be met by the people to know if the individual person is a citizen of Australia. First, a person living in Australia must be checked to become an Australian citizen. The Australian government has established Australian citizenship to help people become Australian citizens. As suggested by Biber(2012), the applicants will obtain wholesome data on the history, rules, customs, and finance of Australia as a result of the Australian citizen test.
Section995-1 Income Tax Assessment Act 1997 provides that for the purpose of the Income Tax Assessment Act (ITAA)1936 a resident is a resident for a period of more than a year. Either the common law test and the statutory assessment specified under section 6(1) of the ITAA 1936 are available in four different ways. In general, there are two types of tests which are a test of common law and the statutory test, a test of residue which takes place according to the common law test and a test of 183 days, Domicile test and superannuation test comes under Statutory test. If a person fulfills the residue test which falls under the test of common law then a person does not meet any other statutory test in order to be considered a resident, but when the individual does not comply with the residue test, which comes under the common law test, that person does comply with any statutory test to be considered a resident of Australia for tax purposes.
If Kit passes any of the four tests, he will be an Australian citizen for tax purposes:
Resides Test: Common law states that individuals ought to remember where they live. If a person fulfills the residue test which is subject to the common law test, no other legislative test needs to be considered a resident. The Commissioner considers that there must be ample time for consistency, routine or habit to be demonstrated. Kit has been in Australia physically for his time. IRC v Lysaght [1928] AC 234, States that are the subject of visit frequency, regularity and length of stay for the person to be treated as a visitor by the court. In Australia, Kit is present for tax year 2014/1 intermittently. In Chile, his parents live in the legal tie of Kit. But Kit is accompanied by his wife and two kids. They have bought a house in Australia, a Westpac Bank common account, and he gets his wages. Kit flies to Chile on his vacation but remains frequently in Australia. Kit thus fulfills the common law test of the Resides test.
183-day test: Under 183 days individuals who remain in Australia for more than 183 days of a year will be considered residents. This test is a legal test. The physical presence in Australia should exceed 183 days (Miller v fct 1946 73 clr 93 levene v irc 1928 ac217), both continuously and intermittently by an individual. Two exemptions for the 183-day test should be fulfilled:
— There is normally a residence building outside Australia for individuals,
— To take residents in Australia should not be intended individually.
Kit spent her time physically in Australia; he spends 245 days for a taxation year in Australia. Kit passes 183 tests in compliance with the statutory taxation year exam.
Domicile Test: The test is a statutory test, competence requires that a person has the legal relations. The domicile test does not apply if a person is living outside Australia permanently. In the case of Kit's, he and his family live at home in Australia. In Australia, he has a domicile. Its permanent residence is in Australia.
Superannuation test: Under the superannuation test, a person should be deemed to be part of a commonwealth superannuation fund that indicates that a person should be public servants or family members is deemed to be a tax resident of Australia. Here, Kit works for a petroleum plant; he has no fund for the commonwealth superannuation fund and he has no family that regards being a tax resident of Australia. Kit here has not met the superannuation test for the 2014/15 tax year under the legislative test.
This test is an official way of confirming the applicant's ability to be a resident of Australia. If a citizen proves his skill in this test to become a citizen of Australia, the applicant receives evidence consisting of the registered name and has to give his / her photo to the Australian Department of Citizenship. We can say that Kit is a permanent resident of Australia from all this information. Kit had applied for Australia's permanent residence, where he found himself qualifying. As he is Australia's permanent resident, it is also obvious that he must be able to...