Tax Law Essay

463 WordsDec 16, 20122 Pages
Domicile test A person whose domicile is in Australia, unless the commissioner is satisfied that his permanent place of abode is outside Australia. FC of T v Applegate: permanent place of abode outside Australia Solicitor transferred to Vila to set up a branch office; indefinite period; left no assets, surrendered lease of house; health fund membership, wife gave birth in Australia; In Vila: leased premises; resident status; admitted to practice; Returned 2 yrs later cuz of illness. “it was held that the question whether a person has a permanent place of abode outside Australia is a question of fact and degree, focusing particularly on the strength of the person’s association with the foreign country having regard to the continuity of the person’s presence in the foreign country, the duration of that presence, and the durability of the person’s association with the foreign country.” FC of T v Jenkins: period of three yrs, similar situation with Applegate case, stay of a fixed duration doesn’t mean temporary. Paragraph 23 of Taxation Ruling IT 2650: permanent place of abode outside Australia a. the intended and actual length of stay in the foreign country – a taxpayer who leaves Australia for an unspecified or substantial period (two years or more) and establishes a home in another country is likely to have a permanent place of abode outside Australia b. establishment of a home outside Australia – this involves looking to see whether the taxpayer lives in something more than temporary accommodation c. the durability of association with Australia – in particular, regard is had to maintanence of bank accounts and education of children. 183-day test A person who has actually been in Australia, continuously or intermittently, during more than one-half of the year of income, unless the commissioner is satisfied that (1)his

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