Question

1. How do you determine whether an individual is Australian resident for the purposes of income tax? List the rules for determining residency as provided in Income Tax Assessments Act 1997 (ITAA).

2. What is a capital gain tax? Explain the rules and an exemption category for the capital gain tax.

3. What are the ethical considerations you are required to be taken into account when preparing and lodging an income tax return for a client?

4. Briefly describe the consequences of not complying with statutory requirements while lodging your income tax return.

Answer 1

If we reside in Australia we are considered as Australian resident for taxation purposes..

If ee dont satisfy the above residency test er have to check for 183 days test says that a peraon resident for 183 days or more then he is considered as resident..

If the above 183 days test is not satisfied then super annutation test for to ensure that common wealth gov employees working at Australian posts overseas are treated as Australian residents for taxation purpose..

B. Sale of capital asset attracts capital gain tax. Ex. Sale of buildings, sale of share, investment which held as an investment etc..

C. All tax practicioners must maintain highest standards of honesty, integrity, objectivity while remaining free from conflicts of interest and preserving clients confidentiality

D. The return filed will become defective and incomplete and the carry forward loss if any cannot be claimed and we are not eligible to set off losses and claim deductions if we dont consider statutory requirements.