Lecture 2
Queensland University of Technology QUT Business School School of Accountancy
ASSESSABLE INCOME: RESIDENCY, DERIVATION AND SOURCE
1.0 INTRODUCTION
1.1 Section 6-5: The Pivotal Section of Assessable Income
2.0 RESIDENCY
2.1 Who is a Resident for Taxation Purposes? 2.2 Test 1: The Resides Test 2.3 Test 2: The Domicile Test 2.4 Test 3: The 183 Day Test 2.5 Test 4: The Superannuation Test
3.0 DERIVATION OF INCOME
3.1 Derivation is a Timing Concept 3.2 Cash v Accruals Basis 3.3 Income from Personal Exertion 3.4 Trading (Business) Income 3.4.1 Lay-by Sales 3.4.2 Revenue Received in Advance (Unearned Income) 3.5 Income from Professional Practices 3.6 Income from Property
4.0 SOURCE
4.1 The Link between Source and Residency 4.2 Income from Personal Services 4.3 Trading (Business) Income 4.4 Income from Property
5.0 SUMMARY AND CONCLUSIONS
Objectives of Lecture 2:
At the end of this lecture, you should be able to:
understand the importance of Sections 6-5(2) and 6-5(3) of the ITAA (1997); understand the concept of residence for Australian tax purposes; deduce from a given set of facts the issues relevant for determining residence status; determine the appropriate basis upon which income is derived; determine the various sources of income; and explain the relevance of residency, derivation and source to the taxation of individuals in Australia.
Week 2 Reading:
1. 2015 CCH Australian Master Tax Guide: Chapter 9 "Tax Accounting and Trading Stock", paragraphs 9-000 to 9-090.
2. 2015 CCH Australian Master Tax Guide: Chapter 21 "Residence, Source, Foreign Tax Credits and Accruals Taxation", paragraphs 21-000 to 21-020, 21-060 to 21-070.
3. Taxation Ruling TR 98/1: Determination of Income; Receipts versus Earnings (available on the AYN 438 Blackboard site).
4. Taxation Ruling IT 2650: Residency: Permanent Place of Abode Outside Australia (available on the AYN 438 Blackboard site).
5. Taxation Ruling TR 98/17:
ASSESSABLE INCOME: RESIDENCY, DERIVATION AND SOURCE
1.0 INTRODUCTION
1.1 Section 6-5: The Pivotal Section of Assessable Income
2.0 RESIDENCY
2.1 Who is a Resident for Taxation Purposes? 2.2 Test 1: The Resides Test 2.3 Test 2: The Domicile Test 2.4 Test 3: The 183 Day Test 2.5 Test 4: The Superannuation Test
3.0 DERIVATION OF INCOME
3.1 Derivation is a Timing Concept 3.2 Cash v Accruals Basis 3.3 Income from Personal Exertion 3.4 Trading (Business) Income 3.4.1 Lay-by Sales 3.4.2 Revenue Received in Advance (Unearned Income) 3.5 Income from Professional Practices 3.6 Income from Property
4.0 SOURCE
4.1 The Link between Source and Residency 4.2 Income from Personal Services 4.3 Trading (Business) Income 4.4 Income from Property
5.0 SUMMARY AND CONCLUSIONS
Objectives of Lecture 2:
At the end of this lecture, you should be able to:
understand the importance of Sections 6-5(2) and 6-5(3) of the ITAA (1997); understand the concept of residence for Australian tax purposes; deduce from a given set of facts the issues relevant for determining residence status; determine the appropriate basis upon which income is derived; determine the various sources of income; and explain the relevance of residency, derivation and source to the taxation of individuals in Australia.
Week 2 Reading:
1. 2015 CCH Australian Master Tax Guide: Chapter 9 "Tax Accounting and Trading Stock", paragraphs 9-000 to 9-090.
2. 2015 CCH Australian Master Tax Guide: Chapter 21 "Residence, Source, Foreign Tax Credits and Accruals Taxation", paragraphs 21-000 to 21-020, 21-060 to 21-070.
3. Taxation Ruling TR 98/1: Determination of Income; Receipts versus Earnings (available on the AYN 438 Blackboard site).
4. Taxation Ruling IT 2650: Residency: Permanent Place of Abode Outside Australia (available on the AYN 438 Blackboard site).
5. Taxation Ruling TR 98/17: