Reference no: EM13666147

It is need to 1000 words and academic style. It is need to explain about the taxpayer is resident or non-resident of Australia.

And how her income will be assessed under Australia tax purpose. It is need to apply with case study (for eg. FCT v Applegate case 79 AT 4307)and need to make reference (APA style).

Complete assignment tasks one to two inclusive. Limit your written response to task one to 1000 words.In grading task one examiners will focus on your referencing to case law, appropriate sections of the ITAA 1936 and ITAA 1997 and income tax rulings issued by the Australian Taxation Office.Case Study 2014

Assignment Task

Mary-Anne Mayfield is a 25 year-old Australian citizen who has recently completed a Master's degree in Accounting at the University of Swansea, Australia. Sheis single, born in Australia and has always lived with her parents at Pelican Flat, NSW.

Mary-Anne'sambition is to pursue a career as a university academic however she has found her opportunities in Australia limited by the fact she does not have a PHD. After canvassing many international Universities she was successful in securing a six month teaching contract with the University of Great Britain based in Coventry, England. The University has advised they may consider a further 12 month extension to the contract provided theyare satisfied with her performance. Mary-Anne has been granted a 12 month UK working visa and will apply for an extension to the visa if offered further work at the University. She left Australia on 1 March 2014 to commence her contract on 1 April 2014. Mary-Anne travelled to the UK on a one-way ticket and has left sufficient funds with her mother to pay for a return flight if she decides to return home. Mary-Anne is unsure of her actions if the UK contract is not extended. At that time she will make a decision to either apply for another teaching position in the UK or return to Australia to commence PHD studies.

Although Mary-Anne has few contactsin the UK she has keep in touch with Wendy, a UK resident she met on a recent holiday to Bali. Wendy lives near Coventry and has assisted Mary-Anne in securing a six-month lease on a one-bedroom apartment close to the University. She has also arranged for Mary-Anne to open an account with a UK bank to receive her University salary. Mary-Anne has few assets in Australia other than a $10,000 term deposit with the Bank of Blacksmiths and a motor vehicle valued at $15,000 (which will be garaged at her parent's house until she decides her future).Mary-Anne intends to purchase a cheap car in the UK for transport.

Required

In the form of a professional correspondence (not exceeding 1000 words) advise Mary-Anne whether at 30 June 2014she will be classed as a resident of Australia for income tax purposes. Also advise Mary-Anne how her income will be assessed given both scenarios of her being deemed a resident and a non-resident. Calculations are not required. Ignore any consequences of the Double Tax Agreement between Australia and the UK.

Assignment Task

Mr Calculatour is a 28 year old individual resident of Australia (Melbourne) for taxation purposes. He was employed as an accountant for the full 2014 financial year with the exception of 2 months spent in the United States on a working holiday and a period of 4 weeks on his return unemployed. The following information relates to the year ended 30 June 2014:

Receipts

 Gross Salary as per group certificate (note 1)                                                  $65,524

 Fully Franked dividends received                                                                    3,800

 Unfranked dividends received                                                                        1,350

 US Gross Salary (note 2)                                                                              8,240

 Gross rent received                                                                                     5,200

 Centrelink Unemployment benefit (NewStart Allowance)                                     1,950

Gift from his grandmother                                                                               5,000

 

Payments

Expenses relating to the rental property (all deductible)                                      7,500

Purchase (02/02/14) of a computer used %60 for business

with an effective life of 4 years                                                                      1,850

      Purchase (01/01/14) of a briefcase used 100% for business

                with an effective life of 4 years                                                      280         

       Personal contribution to a complying superannuation fund                             2,500

       Airfares to the US                                                                                 2,000

       Other deductible expenditure relating to Australian income                            1,000     

Other information

1. At 30 June 2014 Mr Calculatour had an accumulated HELP (HECS) debt of $7,500

2. Mr Calculatouris single with no dependants and did not have any private hospital cover.

Notes

1. The group certificate also showed $21,000 PAYG deducted, a Reportable Fringe Benefit amount of $2,500 and a Reportable Employer Superannuation Contribution amount of $3,300.

2. The US salary was received from employment during his 2 month stay in Las Vegas as a casino card dealer. US tax deducted (in Australian Equivalent dollars) was $995.

Required

Calculate the taxpayer's taxable income and net tax payable/refundable for the year ended 30 June 2014. Show all workings. Referencing to the Income Tax Assessment acts is not required.