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Case Study On Taxation

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Name: Shoaib Mohammed

Student id: WHZ2056

Subject: HI6028 -Taxation

Assessment: Individual assignment on TAXATION

Taxation:
Case study 1:
This case study is about a person called KIT. He has the citizenship of CHILE. we need to decide whether he is the resident of Australia and how his income is taxed as per legislation of the Australia.
We can Prove that Kit is resident of Australia or not by following the four test done to find whether a person is a resident of Australia or not.
Definition of Resident: To be called as Resident of Australia the following rules or test is to be done:
1) Resides test
2) Domicile and permanent place of abode test
3) 183-day test
4) Commonwealth superannuation test
1) Reside TEST: …show more content…

Whitfords Beach Is a group of fishermen who originally owned all the shares . Whitfords Beach group bought land next to shacks owned by the fishermen which help them to access to the beach. The three development companies which intended to develop, subdivide and sell the land, purchased the fishermen's shares for $1.6 million simultaneously an association were adopted by the Whitfords and two of the development companies were appointed to be its general managers. The Whitfords Beach Pty Ltd then changed the zoning of the land, developed it for residential purpose and afterwards sold for a considerable profit. The FC taxed the Whitfords on the profit from the sale of this land . The Commissioner blamed that the profit was assessable and was income from carrying on a business of land development. Whitfords appealed that it merely realized a capital asset in the most advantageous manner and had not carried on a business and as result that the profit was not assessable and also contended that its activities did not cease to be a mere realization simply because extensive work was done on the land in order to fetch the best price. But Whitfords was convicted as it was getting profits from the land sold and thus the court provided positive judgement in favour of FC of Taxation …show more content…

FC of taxes gets sued by different business ventures on regular basis. This is because of the expeditions taken out by different FC of Taxes in their respective domains. The case between Crow v FC of Taxes which also changed the notions of land acquisition entities and thinking of land sellers too. The case provided necessary foundations to support the development of sales of land. The issues involved in Crow v FC were quite complicated and the jury had to go through a long investigation before providing the verdict. The judgement was in favour of Federation commission as Crow was gaining profit from the land sold and the income earned was considered as assessable

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