Assignment title: Information
Your friend is writing a newspaper article on taxation matters and he has asked you to help him research some of the information he requires. He has given you a list of questions that he has to address in his article and he needs you to provide him with short answers to these questions and provide references so that he can check the answer if required. 1. Who is the chairman of the Board of Taxation? 2. What activities has the Board of Taxation been tasked with? 3. Where could information be found on the internet regarding the Australian Taxation Office and what they do? 4. Does the Taxpayer's Charter allow the Australian Taxation Office to disclose your information to other parties? Under what circumstances would this be allowed to occur? 5. In what way does s 4-15 Income Tax Assessment Act 1997 require you to work out your taxable income? 6. Which section of the Income Tax Assessment Act 1997 considers what expenditure is considered to be an allowable deduction? What is the title of this section? 7. Which section of the Income Tax Assessment Act 1997 includes the value of allowances in assessable income? What is the title of this section? 8. Must the value of allowances referred to in the question above be provided in monetary form? Where can you find this information? 9. What topic does Taxation Ruling TR 2010/1 discuss? 10. Taxation Determination TD 2014/6 sets out the cents per kilometre rates for private use of motor vehicles for the FBT year starting 1 April 2014. What is the applicable rate for a motor vehicle with an engine capacity over 2500cc? Part B 20 marks Juliette is a famous English dancer who is contracted by a private theatre management company based in the United States of America to come out to Australia to choreograph the dancing routines for a new stage musical based on the Harry Potter books. The contract is for 2 years from 15 March 2014 through to 15 March 2016. The contract is signed in England with payment of A$70,000 going into a Swiss bank account on 15 July 2014. Further payments of A$70,000 will go into the bank account every 6 months until the contract is complete. Juliette flies into Sydney on 1 February 2014 with the intention of spending some time looking around the country while she is waiting for her job to begin. At this time Juliette gives up the lease on her flat in London and sells some of her furniture. Other items of furniture consist of valuable antique pieces, which she keeps in storage to use on her return. On arrival in Australia Juliette embarks on a bus trip around the country, which is planned to last for 2 months. However, on 28 February 2014 Juliette finds out her mother is seriously ill and she is required to fly back to England to see her in hospital. Juliette stays at her mother's house until her mother is well enough to look after herself and returns to Australia to fulfill her contract on 1 May 2014. As the contract will be fulfilled in Sydney Juliette leases a flat in Sydney and purchases furniture to go with it. As the year passes Juliette finds that she is deeply in love with the lead male dancer, Romeo, and they talk about getting married. As Romeo grew up in Sydney and wants to stay there Juliette buys a house for them to live in together on 1 August 2014 and they marry on 1 September 2014. Juliette can't believe her luck as she has always thought she might like to live in Australia permanently. Sadly, her good luck came to an end when she received a call that her mother had once again become ill and she had to return to England to look after her on 15 October 2014. With a heavy heart Juliette said goodbye to Romeo and returned to England hoping that her mother's condition would pick up quickly so that she could return to her husband and the country she had grown to love. However, Juliette's mother required 24 hour care and insisted that Juliette was the one who looked after her, so Juliette had to stay on in England to fulfill her mother's wishes. To make the arrangement easier for Juliette her mother paid her A$1,000 per month to cover her mobile phone bills to Romeo, even though she lived in her mother's house without paying rent. Throughout this time Juliette still received her A$70,000 every 6 months as she was able to transmit her choreography notes to Romeo who then passed them onto the assistant choreographer and the show went on without her. Juliette also received interest payments of A$2,000 per month from a term deposit that she held with a bank in New Zealand. Unfortunately, Juliette's mother passed away on 10 April 2015 and Juliette returned to Australia on 15 April 2015 to seek comfort in the arms of husband Romeo and distract her mind with work. Required Advise Juliette: (i) as to whether she will be a resident of Australia for income tax purposes for the 2014/15 income year; and (ii) what income amounts will be assessable in Australia in the 2014/15 income year. In your answer please discuss all 4 tests of residency in coming to your conclusion. When completing this assignment please refer to ITAA36 and ITAA97, cases and Rulings where required. Please set out your assignment in a manner that makes it easy to read and follow eg. use subheadings where possible to denote the issue that you are referring to.