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Please refer to the attachment. I would like you to approach the assessment as a professional letter to the client addressing his resident of Australia for tax purposes and his assessment for his tax...

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Please refer to the attachment.
I would like you to approach the assessment as a professional letter to the client addressing his resident of Australia for tax purposes and his assessment for his tax income (higher tax than resident of Australia for tax purposes).

Note: I understand the word count would be consumed by reciting case law and Income Tax Assessment Act 1936, I would really appreciate you are able to focus on discussing side of the question and please attach the references used (Exclude it from your set 750 word limit, if possible).
Answered Same Day May 29, 2021 University of Newcastle

Solution

Preeta answered on May 30 2021
139 Votes
To
Mr Doowon Choi
Date:
Subject: Taxation Advice
· As per the taxation rule of Australia, if a person is Australian citizen for the taxation purpose, then all the income generated in the country as well as a
oad need to be declared. All the assessable as well as exempted income need to be declared including all those income for which income tax might have been paid at a foreign nation.
· Foreign residents or non-residents of Australia only has to declare the income generated within the geographical region of the country.
SECTION 6(1) ITAA1936 Ordinary Concepts Test:
The following four rules are to be followed (TR 98/17) to check if a person can be qualified to be an Australian citizen:
· Residency Test – A person will be deemed to be an Australian resident if he resides in Australia that is he must have a permanent place to stay or have stayed in a particular place for a significant course of time. There are some additional factors which are to be considered for this residency test, which are as follows: if the person is actually present in Australia; social and living a
angements; intention and purpose of the stay must be clearly defined that is if for business or to stay with family; ties with the employer; maintenance and location of assets.
· Domicile Test – To be a citizen, the domicile of a person must be in Australia. Domicile is the permanent place home by law that is the domicile can be acquired by origin or by choice. If the commissioner is of the opinion that the permanent place of stay for the assesse is outside Australia, then this test will fail for a person.
· 183 days test –...
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