Case study - ordinary income

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Reference no: EM131215133 , Length: word count:2500

Case study 1: Residence and source

Fred, an executive of a British corporation specializing in management consultancy, comes to Australia to set up a branch of his company. Although the length of his stay is not certain, he leases a residence in Melbourne for 12 months. His wife accompanies him on the trip but his teenage sons, having Just commenced college, stay in London. Fred rents out the family home. Apart from the absence of his children, Fred's daily behavior is relatively similar to his behavior before entering Australia. As well as the rent on the UK property, Fred earns interest from investments he has In France. Because of ill health Fred returns to the UK 11 months after arriving in Australia.

Requirement -

Discuss whether Fred is a resident of Australia for taxation purposes.

Case study 2: Ordinary income

Explanations of the respective outcomes reached by the courts in the following cases which all involving sales of land

I. Californian Copper Syndicate Ltd v Harris (Surveyor of Taxes) (1904) 5 TC 159

II. Scottish Australian Mining Co Ltd v FC of T (1950) 81 CLR 188

III. FC of T v Whitfords Beach Pty Ltd (1982) 150 CLR

IV. Statham & Amor v FC of T 89 Air 4070

V. Casimaty v FC of T 97 ATC 5135

VI. Moana Sand Pry Ltd v FC of T 88 ATC 4897

VII. Crow v FC of T 88 ATC 4620

VIII. McCurry & Anor v FC of T 98 ATC 4487.

Reference no: EM131215133

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