How salary and investment income would be taxed

Assignment Help Taxation

Reference no: EM131024905 , Length: word count:1000

Case study 1: Residence and source

Kit is a permanent resident of Australia. He was born in Chile and retains his Chilean citizenship. Kit spends most of the year working off the coast of Indonesia on an oil rig for a United States company. He was recruited for this job in Australia and signed a contract with the company here. For the last four years, Kit's wife has lived in Australia with their two children. They purchased a home in Australia three years ago. Kit and his wife have a joint bank account with Westpac Bank. Kit's salary is paid directly into his account. All of the family's other investments, including a share portfolio that generates dividend income, remain in Chile. Kit gets one month off from work every third month and, on these occasions, he meets with his family either in Australia or on holidays around South America (usually in Chile where his parents reside).

Discuss whether Kit is a resident of Australia and how his salary and investment income would be taxed (10 marks, max. 1000 words).

Case study 2: ordinary income

Explanations of the respective outcomes reached by the courts in the following cases which all involving sales of land:

I. Californian Copper Syndicate Ltd v Harris (Surveyor of Taxes) (1904) 5 TC 159

II. Scottish Australian Mining Co Ltd v FC of T (1950) 81 CLR 188

III. FC of T v Whitfords Beach Pty Ltd (1982) 150 CLR

IV. Statham & Anor v FC of T 89 ATC 4070

V. Casimaty v FC of T 97 ATC 5135

VI. Moana Sand Pty Ltd v FC of T 88 ATC 4897

VII. Crow v FC of T 88 ATC 4620

VIII. McCurry & Anor v FC of T 98 ATC 4487

Reference no: EM131024905

Questions Cloud

What does marketers do : WHAT DOES MARKETERS DO - The Harvard system must be used for the in-text references and the reference list.

Plot the graph of the equations and interpret the result : Plot the graph of the equations 10x - 4y = 3 and 5x - 2y = 6 and interpret the result.

What are legal and ethical ramifications of honeypot use : What types of honeypots are there? What are they used for? What are legal and ethical ramifications of honeypot use? If you were a Chief Information Security Officer (CISO) would you use one, and why?

Each unit requires four pounds of raw material that costs : Each unit requires four pounds of raw material that costs $3.00 per pound. Management desires to end each quarter with a raw materials inventory equal to 15% of the following quarter’s production needs.

How salary and investment income would be taxed : Discuss whether Kit is a resident of Australia and how his salary and investment income would be taxed

Prepare a tax research memo : Your manager has asked you to prepare a tax research memo indicating if the $15,000 should be included in taxable income for Werner.

How does the author determine what the first equation is : What about the second equation? The second equation is the equation formed out of the second information in the problem, where the required mixture of the two components x and y is formed using the data given in the problem. This step is called th..

Why do we have to do all the shading : Why can't the answer for these linear inequalities be simply the line y = mx + b? Why do we have to do all the shading?

Define actual and perceived independence : Would your answer change if EFL had written to King & Queen advising you that they intended to make a loan to Impulse and were relying on the 2012 audited financial report to assist them in making their decision - Define actual and perceived indep..

User Account

All Pages