Over the years, Residency has been a contentious issue as it affects both the liability of...

 

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"Over the years, Residency has been a contentious issue as it affects both the liability of an individual to pay Australian tax, and the rate at which such tax will be applied. The issue continues to only be partly addressed and remains open to wide interpretation. This is unlikely to improve, and certainty remains beyond the grasp of the individual, who remains at risk of the whims of the Australian Taxation Office and its capricious commissioners." You have recently been employed by a small suburban accounting firm who have a number of migrant clients who while holding Australian residency travel widely for work. Your Practice Manager has made the above statement to you following several frustrating meetings with clients. You respond by undertaking to research the issue to see just how contentious the situation really is. On this basis, your Practice Manager has requested that you prepare a report within three weeks to enable him to study the position. ASSIGNMENT ISSUE FOR RESEARCH: Required: Complete the following task IN YOUR OWN WORDS; i.e., no copying and pasting. You are required to prepare a report in which you rescarch, analyse and evaluate the current residency status situation from a taxation perspective, and any planned changes to legislation or regulation. Your report must follow the standard formatting of a report, and demonstrate you understand what influences income tax legislation, how tax law is applied in the circumstances of the question and the technical considerations involved. (Please make reference to at least four (4) journal articles and four (4) cases to support your research) "Over the years, Residency has been a contentious issue as it affects both the liability of an individual to pay Australian tax, and the rate at which such tax will be applied. The issue continues to only be partly addressed and remains open to wide interpretation. This is unlikely to improve, and certainty remains beyond the grasp of the individual, who remains at risk of the whims of the Australian Taxation Office and its capricious commissioners." You have recently been employed by a small suburban accounting firm who have a number of migrant clients who while holding Australian residency travel widely for work. Your Practice Manager has made the above statement to you following several frustrating meetings with clients. You respond by undertaking to research the issue to see just how contentious the situation really is. On this basis, your Practice Manager has requested that you prepare a report within three weeks to enable him to study the position. ASSIGNMENT ISSUE FOR RESEARCH: Required: Complete the following task IN YOUR OWN WORDS; i.e., no copying and pasting. You are required to prepare a report in which you rescarch, analyse and evaluate the current residency status situation from a taxation perspective, and any planned changes to legislation or regulation. Your report must follow the standard formatting of a report, and demonstrate you understand what influences income tax legislation, how tax law is applied in the circumstances of the question and the technical considerations involved. (Please make reference to at least four (4) journal articles and four (4) cases to support your research)

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The issue of residency and its implications for taxation is a contentious one and has been for many ... View the full answer