Fins 2643 Potential Questions Essays

* What are the differences between the following components of taxable income? Provide at least one example of each.

3. Calculate a taxpayer’s employment and self-employment taxes payable and explain tax considerations relating to whether a taxpayer is considered to be an employee or a self-employed independent contractor.

ITAA 1997 Section 995-1 provides that the meaning of an “Australian resident” is defined in ITAA 1936 Section 6 (1), which sets out different criteria for determining the residency of individuals and companies. There are four tests to ascertain that an individual is a resident or not. An individual need only to satisfy one of these tests to qualify as a resident for tax purposes. These tests are the ordinary concept test, the domicile test, the 183-day day test and the superannuation test.

Residents: All ordinary income and statutory income of an Australian resident taxpayer derived directly or indirectly from all sources, whether in or out of Australia, during the income year: s6-5(2) & s6-10(4).

This case study is to discuss whether Ernie is an Australian resident for tax purpose. If he satisfies any one of the residency tests in s 6(1) ITAA36 he will be determined for the year or part of the year. It is to determine which part of his income is to be taxed for the year June 2016. If he is a resident, he will be taxed on all income sources. If he is not a resident, he will only be taxed on Australian sourced income.

It is necessary for Jenny to be an Australian resident according to ordinary concepts. Tax rulings 98/17 assist to determine the residency of a person. In this case, Jenny is physically present in Australia. Additionally she leased an apartment for 9 months. She considers this apartment as her home during her stay. Moreover, her parents visit her two times. These are enough reasons for Jenny to be Australian resident for taxation purposes. So, Jenny is regarded as a resident of Australia.

S6-10 (4) if you are an Australian resident, your assessable income includes your statutory income from all sources, whether in or out of Australia.

Obtaining a permanent residency for Australia is an arduous, if not impossible, task. A non-citizen has to apply for permanent visa to be able to stay in Australia without visa applying for visa extensions ever. After obtaining a permanent visa you can live and work in Australia without any restrictions.

In this assignment, it is assumed that Emma and Ryma are both tax residents of Australia.

The Learning Outcomes in this course also help you to achieve some of the overall

The most important tax in Australia is income tax, but compared to other wealthy nations around the globe Australia is a relative low taxed country.

When it comes to making a successful and highly profitable property investment, there are a number of factors that you need to consider before choosing an investment property. In addition to being highly competitive, property investing can be an everyday learning experience for both novices as well as successful property investors. Consecutively, hiring a reliable property investment company is vital for any investor. However, considering the fact that you can find a number of property investment companies in the market today, choosing the best one can be a daunting task. Not to worry, if you want to know how to invest in the right property and achieve financial

Investing in real estate is something anyone can do and it can be both fun and very rewarding financially. There are many aspects of real estate investing, but in its most simple form, it is owning property. In the past, many investors became involved in real estate almost by accident; but this trend has changed in recent years due to our unstable economic condition. Now people are actively looking for safe places to park their hard-earned money to protect their families financial future and real estate is becoming a safe haven for their wealth.

In order to determine whether Kit is a resident of Australia for taxation purposes, it is important to understand the process of evaluation of residency of the individual. The Australian taxation law has conceived certain methods that can determine whether the income generated by an individual either in Australia or worldwide must be taxed. There are four such circumstances that can help in determining Kit’s residency. Referred to as “Tests” the circumstances are explained below-

a) Ordinary income (s6-5) is an element of Assessable income. In the context of the Income Tax Assessment Act 1936 and ITAA 1997 assessable income is made up of Ordinary Income and Statutory Income. Assessable income includes income according to ordinary concepts which is called ordinary income s6-5(1).