Shania, an American film star, who lived at a hotel in Sydney during a visit to Australia from 28 January of the current tax year to 28 November of the next tax year. The purpose of the visit was to film a television series set in Australia. She signed the acting contract in Canada. However, the series was not a success and she returned to the USA on 29 November of the next tax year. Required: (a) With reference to the THREE tests listed under s 6(1)(a) ITAA36 and rulings, discuss whether Shania is an Australian resident for taxation purpose for the current tax year. (11 marks) (b) With reference to case law and income tax legislation, discuss the source of Shania's acting income and explain whether her income is subject to Australian taxation. (6 marks) (c) Would it affect your answer in part (a) if shortly after arrival, Shania declares that she loves Australia and intends to buy a ranch and settle here permanently? Briefly explain your answer. (2 marks) (d) Would it affect your answer in part (a) if Shania marries an Australian resident she has just met? Briefly explain.

Answer rating: 100% (QA)

a In determining whether Shania is an Australian resident for tax purposes for the current tax year we need to consider the three tests listed under s 61a of the Income Tax Assessment Act 1936 ITAA36 ... View the full answer