AUSTRALIAN TAXATION LAW

Australian Taxation Law



Australian Taxation Law

Introduction

The purpose of this study is to expand the boundaries of the author's knowledge by exploring some relevant facts related to evaluation of Australian Taxation Law cases. It is a branch of law that aims to study a set of legal rules according to certain principles common to all of them, governing the establishment, collection and control of revenues from the State Public Law from the exercise of its taxing power, and as relations between the State itself and individuals considered as taxpayers. It is a branch of public law which studies the legal standards by which the State exercises its power of taxation for the purpose of obtaining income individuals that serve to cover public spending for the sake of the common good. In this paper, the author will analyze two cases related to Australian Taxation Law (Peters, 1991, pp. 76-86).

Analysis of Case-1

Brian Jones who is a medical doctor specializes in obstetrics. He owns and runs a practice in Sydney. Brian who is an Australian citizen is married to Elfreida who was born in Germany but has adopted Australian citizenship. Elfreida has an elderly mother Hanna who still lives in Germany and who has recently suffered an illness that prevents her from travelling. Elfreida would like to spend some time in Europe not too far away from her mother and she was delighted when she became aware that Brian had been offered to coordinate a medical course at the University of Canterbury in the UK for one term. Brian's appointment was for a four-month fixed term contract. Brian, Elfreida and their four children left Australia on 1 September 2011 and Brian started his employment with the university on 15 September 2011. The family found a house to rent in Canterbury UK and the main residence which Brian and Elfreida own in Sydney was rented out for four months.

While he was away in England, Brian hired a locum who saw his patients and operated the practice. Brian was in regular contact with the practice by email and telephone and he flew back for a week in November to solve a few administrative problems that has accumulated during his absence. As Brian's contract with the University of Canterbury expired and Hanna's health had noticeably improved, the Jones family decided to return to Australia where they arrived on 20 January 2012. Anticipating that his tax affairs might include some rather complex issues, in particular with regards to residency and derivation of income, Brian has approached us for the preparation of his 2011/2012 tax return and the determination of his tax liability. Brian has been meticulous in keeping records and provides with the information. This information represents his understanding of what was relevant for tax purposes and we will form our judgment on the various matters based upon your knowledge of Australian income tax law.

Case-1 Solution

Brian as Resident

With reference to the relevant sections of the ITAA 1936 and ITAA 997, Case Law, Tax Rulings ...