Q In what circumstances are individuals and companies treated as residents of Australia Home, - Explain the Income Tax Assessment Act Question - For tax purpose, in what circumstances are individuals and companies treated as residents of Australia? Explain based on the Income Tax Assessment Act 1936 (Cth) and relevant case law. Answer - As per Income tax assessment Act 1936, individuals are treated as resident of Australia for the purpose of taxation, if one of the following conditions are met: 1. The individual always lived in Australia. 2. The individual has come to Australia with the intention of living in Australia permanently. 3. The individual has been continuously in Australia for more than 180 days or 6 months and during this period he mostly worked in one job and lived at one place. 4. The individual is an Australian citizen who has gone abroad for a temporary period and does not intend to live there on a permanent basis. 5. The individual is a foreign student, who is visiting Australia for study purpose and who is enrolled in a course that is of a duration of more than 180 days or six months. As per the Income Tax Assessment Act, 1936, companies are treated as resident of Australia for the purpose of taxation if one of the following conditions are met: 1. The company is incorporated in Australia. 2. The company is not incorporated in Australia but it has business in Australia and its central management and control is from Australia or its shareholders who hold majority voting rights are Australian residents. In the case of Commissioner of Taxation v Pike [2020] FCAFC 158, the Full Federal Court held that if an individual who is an Australian resident is working abroad for many years and has a house in Australia where his family resides then this means that the individual has no intention of moving permanently out of Australia. Therefore, the court ruled, that the individual should be treated as a resident of Australia for the purpose of taxation, during the period he lived abroad. The essence of this judgment is that the residency factor is very important when determining whether an individual is Australian resident for the purpose of taxation or not. Related: Explain the Income Tax Assessment Act What are the tax consequences Calculate what amount is allowed as deduction What is meant by term tax evasion
Related :- Q Discuss Session Hijacking attacks and countermeasures discuss session hijacking attacks, Session Fixation attacks, and Cross Site Scripting attack and counter measures - MN623 Cyber Security and Analytics Q Demonstrate the use of CRUNCH tool demonstrate the use of crunch tool - build a predictive model which takes in the above 4 parameters and predicts whether golf will be played on any given day. Q Use of machine learning in cyber security use of machine learning in cyber security - What were some spam filtering techniques used before the introduction of ML techniques for spam detection. Q Comment on the role of malware in cyber-attacks comment on the role of malware in cyber-attacks - Cyber Security and Analytics - Define and evaluate the classification techniques for malware analysis. Q What are the key features of the objection what are the key features of the objection - what are the key features of the objection and appeal process against the commissioner's decision Q What will be the likely outcome against Bill what will be the likely outcome against bill - Business And Corporate Law - determine if these companies are ideal to invest in on behalf of their clients. Q Calculate the taxable value of fringe benefit calculate the taxable value of fringe benefit - calculate the taxable value of the fringe benefit using the statutory formula Q Discuss statutory provisions and common law discuss statutory provisions and common law - discuss amounts would be as an allowable deduction against assessable income Q What are the relevant franking account entries what are the relevant franking account entries - what are the relevant franking account entries for abc co and xyx co Q Difference between net capital loss and capital loss? difference between net capital loss and capital loss - what difference between net capital gain and capital gain and between net capital loss and capital loss