Australia taxation law Essay Example | Topics and Well Written Essays - 2250 words

Australia appraiseation law - Essay ExampleThe first task determine was the determination of whether, for tax purposes, the Finlays are considered residents of Australia. The determination was made that the Finlays were considered residents based upon the mansion test. According to Australian impose Law the Finlays are considered residents because they were in Australia for 6 months or more during the 2006/2007 tax year. They also meet residency requirements because they met one or more of the three statutory residency tests. They are considered residents because they maintain a conformity in Australia, have resided in Australia for 6 months during the tax year, and they contri howevere to the superannuation retirement fund.The biggest question to coiffure about residency and foreign income is what is taxable and what is not taxable. It has already been determined that the Finlays meet residency requirements for tax purposes. Although the tax forms ask for foreign income and fo reign taxes paid on those earnings, the tax forms do not condone why. The first determination was that the income was acquire in a country that has already taxed the income. If the foreign income was earned but not taxed it would be subject to gross by the Australian Government. ... d States and Australia was created for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (Australian Taxation Office website). This protocol covers all aspects of income earned in the United States. Most specifically, relating to this guinea pig study, income earned within the United States is taxed by the United States. either income not taxed is considered taxable income in Australia and residents of Australia are subject to taxation on that income earned. It is very important for the exclusive to report foreign income and whether or not it was taxed. All records relating to the income and taxes paid should be kept as produce of income earned a nd taxes paid. Taxation also applies to dividends earned, interest earned, royalties, and capital gains earned in the United States. In this case study Andrews earnings were taxed but dividends, capital gains, and interest earned in the United States were not taxed so they are subject to taxation in Australia. Other instance where income may not have been taxed by the United States include the following1) the income is less than the amount where taxation begins2) the income falls into an exempt category in the foreign country3) a memorandum of understanding exists4) The income consists of supplements paid by the Australian Staffing Assistance project5) The foreign country levies a tax but does not have a system in place to collect those taxesTaxPack and Forms.This case study was completed using the Australian Taxation Offices TaxPack retrievable from their website at www.ato.gov.au. The TaxPack for individuals, supplement section, and Business and professional items schedule for in dividuals 2007. In addition, the rental property worksheet was used to