200869 Principles of Taxation Law

Task:

Provide advice to your client. Your answer must include relevant legislation, cases and Rulings. You must clearly reference your answer with footnotes in compliance with AGLC3. 

Background Facts:

Rob is an Australian citizen expat. He moved to New Zealand 8 years ago. He lives and works; and is married to a New Zealander and has no plans to move back to Australia.  Rob has a residence in Sydney at 10 Snapper Street Potts Point that is valued at $1million. 10 Snapper Street was his principle place of residence when Rob lived in Australia. He has no other land in Australia, or anywhere else in the world, and rents the property he resides at in Otago, New Zealand.

Rob’s two sons live at 10 Snapper Street with their spouses (it’s a big house). Rob has a room set aside for himself but has not been back to Australia for 7 years.   

Rob considers 10 Snapper Street, his principle place of residence for Capital Gains Tax purposes. He still receives his Australian mail at that address. He has a bank account in Australia into which dividends from Australian shares that Rob owns are paid. 

Required:

1.Is Rob a resident of Australia for tax purposes?  

2.Is Rob correct in assumption that 10 Snapper Street is his principle place of residence for CGT purposes; and 

3.How will the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 affect this assumption and what can Rob do? 

Rubric Marking Criteria

These are the five marking criteria on Turnitin: 

1.Identify the key elements of the Australian Income Tax system: Legal Issues: Identification

2.Apply the relevance of tax law information in decided taxation cases, effectively and appropriately, displaying clear understanding of how the case law and legislation are applied in solving tax law problems:

3.Explain the key elements of the Australian Income Tax system: by understanding of classification and application of Tax law in a practical sense.

4.Coherence and persuasiveness of arguments and examination of opposing views: Structure and form of essay; and in a concise form. (Grammar, spelling and Style). 

Citation used in accordance with the Guidelines.