Taxation Law Oz Assignment Help

Taxation Law Oz Assignment Help

Taxation Law Oz Assignment Help

Introduction

In general, a residence is identified as any person which is seen to be assessed under the “s995 -1 ITAA97, s6(1) ITAA36”. As per this section residence is identified as a person who has a domicile in Australia unless there is a significant satisfaction of a person’s permanent place of abode outside the country. In addition to this, the residence of a person is also identified with an individual who has been residing in Australia for more than half of the income year. The application of the similar conceit is also applicable to businesses law which has a place of incorporation, control for voting power and central management control.

The main extent of the study has covered various types of the aspects which are seen to be associated to the discussion as stated under the various types of the extent for the consideration of tax treatments in foreign business in Australia. The important nature of the different impact of the taxation based on the residency has been identified the several types of the discussions which are related to the tax residency and the implications on the business as per test of residency. The differing nature of tax treatments for the individuals has been depicted in terms of four broad tests. These are needed to be taken into consideration with the ordinary concepts, domicile test, 183-day test and superannuation test

Varying nature of tax treatments and consequences for foreigners

In case a taxpayer in Australia is seen as a foreign resident then the only consideration for the tax treatment needs to be depicted in terms of the taxes which are levied as per the ordinary and statutory income which are based on the sources of income in Australia. This will not be the case unless there is deemed assessable income present with the other sources of income. The main questions for the sourcing of the income needs to be also followed with the anything which has a real income source and hold a practical application. This is directly in relation to the case of “Nathan v FCT (1918)”, the sources of rule are also based on the several types of other aspects which are needed to be depicted in terms of the common laws and practices as per the statutory provisions.

The duties of the foreign residents are seen with lodgment of the tax return. Moreover, the individuals are seen with the payment of the sources needed to be included for the Australian residents which are needed to be considered for the various types of the sources of the tax treatment. Some of the different types of spruces of the income pertaining to tax treatment are considered with the royalties, unfranked dividends and interest. The treaties of the taxes pertaining to the Australian residents are depicted as per overall impact on the individual as per the prescribed foreign country’s tax slab.

It needs to be also seen that the various types of the treaties for Australian pertaining to other countries needs to be updated overseas rates and also address the residency actions pertaining Australian legislation and treatment of the tax as per tax amount. It needs to be also understood that the owners of the Australian financial institutions will be able to ensure the status of the residency which needs to be deducted as per the correct amount of taxation. The net impact for the same needs to be depicted as per the various types of considerations which are directly seen as per the actions of Australia and the foreign country in a situation of discrepancy.

As per the individual test 4, the member of the common wealth needs to be accounted for taxation in case a member of the commonwealth public servant is a foreign diplomat living abroad. Moreover, as per the companies test 1 it needs to be ascertained that the allocation of the various types of the tax treatment based on the incorporation test needs to be followed with the consideration of ‘resident’ concept regardless of the business being managed by the foreign shareholders. Under the general principles of residency taxation, it has been also stated a resident of Australia will be depicted for taxation ass per the sources of income. The “s 6-5(2), Income Tax Assessment Act 1997 (ITAA97)” is relevant in this aspect which is in line with “s 6-5(3), ITAA97”.

Therefore, the differing nature of the tax treatment as per the residency is seen with foreign residents are seen to be receiving the benefits of taxation as per offsetting of the tax. Moreover, the foreign residents are not liable for claiming of medical levy

Recognizing the tax treatment which differs for foreigners and residents

Income Type

Application of tax to the foreigners

Application of tax to the residents

Income from Annuities and pensions

It needs to be seen that the individuals are needed to be considered under the pensions which are a result of receiving the returns from the Australian tax and the exemptions needs to be considered for the inclusion under the Australian tax treaty.

The inclusion of the annuities for the taxation needs to be seen with the various types of the treatments which are regarded as per the assessment of the income pertaining to the annuities which are also needed to be considered as per the several types of reversionary benefits. The Australian pensions are further needed to be depicted as per the consideration which are seen to be based on the tax treatment as per the regular payments pertaining to stream of income. The payments are further taken into account with the retirement savings pertaining to the account provider.

Generation of the income from the employment in Australia

The foreign individuals are seen to be working in Australia and engaged in the various types of the activities which are seen to be based on the depictions considered in Australia. In addition to this, the comparison of the taxable income has been depicted as per the various types of the evaluations based on the taxation slabs. Moreover, the foreign residents are exempted from taxation from the revenue generated from the Australia. However, for any other source of revenue which is generated from any other country is taxable in nature

The information shown in the excerpt has identified that the application of the tax pertaining to the employment in Australia needs to be identified with the various types of the sources which are seen to be directly assorted to the Table 1. It needs to be assessed that the different types of the focus of the information as per the residents of Australia needs to be also considered with a Medicare levy of 2%

Treatment of the unfranked dividend and interest

It needs to be discerned that the foreign residents in Australia are seen to be going through the process of interest, unfranked dividends and the royalties which are seen to be associated to the earnings of Australia.

The interest borne with the non-treaty countries are observed with 10% interest. Moreover, unfranked dividends are seen with interest rate of 30%.

Franked Dividends

The receiving of the dividends are needed to be taken into account as per the exemption which are made from the Australian income and withholding of tax.

The residents of the company are discerned to be elected with the various types of tax consideration seen with fully franked dividends and the amount which is to be paid in credit

Income from Rent

The inclusion of the investigation pertaining to the Australian property will be outlined as per the significant nature of the ways in which the tax will be applied to the rental income and to be received from the properties based in Australia.

The properties as per the residential tax needs to be also incorporated as per the consideration which are based on the future usage. The different types of the considerations of the taxation treatment for the residents of the Australia.

Income from Australian business

The foreign residents have been seen to be conducting business in Australia which are subject to essential considerations pertaining to the paying tax on income and lodgment of the tax. The foreign tax payers are also exempted from paying any sort of unfranked dividend and interest amount

The different types of assessable income are seen with the nature of carrying out the business in Australia. It needs to be seen that nature of the consideration as per the different nature of running expenditure pertaining to the assessable income is not inclusive of the GST amount

Income pertaining to construction

The foreign residents are further identified with the tax amount which is withheld by the tax payer.

The incomes pertaining to the installment, construction and operation from the casino gambling is not exempted for the taxpayers.

Australian assets as a result of CG on CGT.

The general consideration of the capital gains has been depicted in terms of the various types of the CG associated to the Australian property. This needs to be considered with the Australian tax return clause

In case of the foreign residents the properties which are held for CGT cannot be claimed for the duction pertaining to the income tax. Moreover, the cost of ownership will be included for taxation

Table 1: Taxable income compared with Foreigners and Residents

Impact of tax treatment for foreigners

The net effect of the various types of tax treatment needs to be greater with every income pertaining to both residents and foreigners. However, the net impact of taxation on the foreigners has been shown with non-claimant of the levy associated to Medicare liability. The interest pertaining to the flat rate of 10% taxation has been identified overseas addresses. Moreover, the foreign tax payers are excluded from offsetting of the tax. In addition to this, it needs to be also discerned that tax is offset with the CGT included in the Australian property.

Conclusion

The different types of assertions as per varying nature of tax treatments and consequences for foreigners is seen as a foreign resident then the only consideration for the tax treatment needs to be depicted in terms of the taxes which are levied as per the ordinary and statutory income which are based on the sources of income in Australia. individual test 4 the member of the common wealth needs to be accounted for taxation in case a member of the commonwealth public servant is a foreign diplomat living abroad. It needs to be also discerned that the differing nature of the taxation law treatment as per the residency is seen with foreign residents are seen to be receiving the benefits of taxation as per offsetting of the tax. Moreover, the foreign residents are not liable for claiming of medical levy. The different types of consideration for the Recognizing the tax treatment which differs for foreigners and residents are considered with inclusion of the annuities for the taxation for the residents. On thee other hand the foreign residents are seen with pensions which are a result of receiving the returns from the Australian tax and the exemptions needs to be considered for the inclusion under the Australian tax treaty. The foreign individuals are seen to be working in Australia and engaged in the various types of the activities which are seen to be based on the depictions considered in Australia.

References

1. Altshuler, Rosanne, Stephen Shay, and Eric Toder. "Lessons the United States can learn from other countries’ territorial systems for taxing income of multinational corporations." (2015).
2. Basak, Sayan. "Equalization Levy: A New Perspective of E-Commerce Taxation." Intertax 44.11 (2016): 845-852.
3. Basu, Subhajit. Global perspectives on e-commerce taxation law. Routledge, 2016.
4. Burkhauser, Richard V., Markus H. Hahn, and Roger Wilkins. "Measuring top incomes using tax record data: A cautionary tale from Australia." The Journal of Economic Inequality 13.2 (2015): 181-205.
5. Burton, David R. "Tax Reform: Eliminating the Double Taxation of Corporate Income." (2017).
6. Burton, David R. "Tax Reform: Eliminating the Double Taxation of Corporate Income." (2017).
7. Cao, Liangyue, et al. "Understanding the economy-wide efficiency and incidence of major Australian taxes." Canberra: Treasury working paper 2001 (2015).
8. Genser, Bernd, and Robert Holzmann. "The taxation of internationally portable pensions: Fiscal issues and policy options." (2016).
9. Graetz, Michael J., and Alvin C. Warren. "Integration of corporate and shareholder taxes." (2016).
10. Hemmings, Philip, and Annamaria Tuske. "Improving Taxes and Transfers in Australia." (2015).
11. Holzmann, Robert. "Taxing pensions of an internationally mobile labor force: Portability issues and taxation options." (2016).
12. Miller, Angharad, and Lynne Oats. Principles of international taxation. Bloomsbury Publishing, 2016.
13. Reimer, Ekkehart, Stefan Schmid, and Marianne Orell, eds. Permanent establishments: a domestic taxation, bilateral tax treaty and OECD perspective. Kluwer Law International, 2018.
14. Shaviro, Daniel. "Taxing Potential Community Members' Foreign Source Income." (2015).
15. Stewart, Miranda. "Redistribution between Rich and Poor Countries." (2018).

1. Miller, Angharad, and Lynne Oats. Principles of international taxation. Bloomsbury Publishing, 2016.

2. Altshuler, Rosanne, Stephen Shay, and Eric Toder. "Lessons the United States can learn from other countries’ territorial systems for taxing income of multinational corporations." (2015).

3.  Stewart, Miranda. "Redistribution between Rich and Poor Countries." (2018).

4. Burton, David R. "Tax Reform: Eliminating the Double Taxation of Corporate Income." (2017).

5. Cao, Liangyue, et al. "Understanding the economy-wide efficiency and incidence of major Australian taxes." Canberra: Treasury working paper 2001 (2015).

6. Holzmann, Robert. "Taxing pensions of an internationally mobile labor force: Portability issues and taxation options." (2016).

7. Reimer, Ekkehart, Stefan Schmid, and Marianne Orell, eds. Permanent establishments: a domestic taxation, bilateral tax treaty and OECD perspective. Kluwer Law International, 2018.

8. Burkhauser, Richard V., Markus H. Hahn, and Roger Wilkins. "Measuring top incomes using tax record data: A cautionary tale from Australia." The Journal of Economic Inequality 13.2 (2015): 181-205.

9. Shaviro, Daniel. "Taxing Potential Community Members' Foreign Source Income." (2015).

10. Basu, Subhajit. Global perspectives on e-commerce taxation law. Routledge, 2016.

11. Basak, Sayan. "Equalization Levy: A New Perspective of E-Commerce Taxation." Intertax 44.11 (2016): 845-852.

12. Graetz, Michael J., and Alvin C. Warren. "Integration of corporate and shareholder taxes." (2016).

13. Burton, David R. "Tax Reform: Eliminating the Double Taxation of Corporate Income." (2017).

14. Hemmings, Philip, and Annamaria Tuske. "Improving Taxes and Transfers in Australia." (2015).

15. Genser, Bernd, and Robert Holzmann. "The taxation of internationally portable pensions: Fiscal issues and policy options." (2016)