Residence and Source

1. Briefly explain the relevance of 'residence' and 'source' in determining a taxpayer's taxation liability.

2. What four tests are used to determine the question of an individual's 'residence'?

3. How have the courts interpreted the phrase 'permanent place of abode'?

4. Define 'domicile'.

5. Briefly describe:

(a) domicile of origin;

(b) domicile of choice;

(c) domicile of dependency.

6. In broad outline, how do you determine the 'source' of particular income? What are the possible sources of personal exertion income?

The Taxation Equations

7. Briefly define and give examples of:

(a) gross income;

1. exempt income;
2. non-assessable non-exempt income;
3. assessable income;
4. allowable deductions;
5. taxable income;
6. tax offsets.

8. What is the difference between exempt income and a taxpayer who is exempt?

1. What is the difference between exempt income and non-assessable non-exempt income?

1. What is the role of Div. 11?

Income

11. A receipt can be seen as 'income' in one of two ways. What are they?

12. What is 'ordinary income'?

1. What is 'statutory income'?

1. What is the relationship between assessable income, ordinary income and statutory income?

1. What is the role of Div. 10?

1. What is the effect of s 15-2?

1. What is the effect of s 15-15?

1. What is meant by 'income must be derived'?

1. When is income 'derived'?

1. Define a 'windfall gain'.

1. Briefly explain what 'mutual payments' are and how they are taxed.

1. A sporting club receives income from membership subscriptions, hire of its facilities and bar takings in its clubhouse. To what extent are these receipts taxable?

1. Briefly explain when gambling winnings will be taxable.

1. Briefly explain when gifts will be taxable.

1. A plays club football in the North Queensland League. Last year he was named as the League's Best and Fairest player and received a $5,000 prize donated by a local television station. Explain whether he is taxable on his prize.

1. In what circumstances will a compensation payment be regarded as taxable income?

1. B received $1,000,000 for heroin he had illegally imported into Australia. The heroin had cost him $200,000. To what extent, if at all, is he liable for tax on his 'profit'?

1. If B is taxable on that profit can he claim the bribes he paid various overseas customs officials as deductions?

1. As part of her salary package, C receives the use of a company car. She estimates that the value to her of the company car is $5,000 per year. To what extent, if at all, is she assessable on that value?

1. To what extent, if at all, is her employer assessable to tax because it provides her with the car?

1. How are loan premiums and discounts treated for income tax purposes?

1. How are premiums that tenants pay their landlords assessed in the landlord's hands under the income provisions of the Income Tax Assessment Acts?

1. A farmer subdivides his farm into housing blocks and sells them at a substantial profit. To what extent, if at all, are the proceeds of those sales assessable income in his hands? Why?