Taxation, Theory, Practice and Law

HI 6 028 Taxation, Theory, Practice & Law T1, 2017 ASSIGNMENT 1 Due date: Week 7 Due date: Wee k 8 ( Block Mode) Maximum marks: 20 (20%) Instructions: Th is assignment is to be submitted by the due date in both soft -copy (Safeassign – Bb) . NO hard copy assignment will be accepted. The assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook . It is the responsibility of the student submitting the work to ensure that the work is in fact his/her own work. Ensure that when incorporating the works of others into your submission that it appropriately acknowledged. Case study 1: Residence and source Kit is a permanent residen t of Australia. He was born in C hile and retain s 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 rec ruited for this job in Australia and signed a contract with the company her e. For the last four years, Kit ’s wife ha s lived in Australia with their two children. They purchased a home in Australia three year s 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 ho w 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 L td 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 (10 marks, max. 1000 words).