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Under the Income Tax Assessment Act, a company incorporated overseas is regarded as a resident of Australia if it carries on a business in Australia

Under the Income Tax Assessment Act, a company incorporated overseas is regarded as a resident of Australia if it carries on a business in Australia and its central management and control is in Australia. The Board of Taxation is proposing a change to the rules to determine the residency status of a company incorporated overseas. Required: Review the paper and discuss: 1. What is wrong with the current law and 2. Will the proposed change whether the proposed change address the issue.

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