3070386_1_637013594347335927_3070386---answer

1 Approved Answer Sangeetha C answered on January 22, 2021 5 Ratings, (9 Votes) Ordinary resident test From the facts, it would appear that Misha does not "reside" in Australia during the relevant period as she does not demonstrate any of the factors that would point towards her residing in Australia. · Domicile test From the facts, we can assume that Misha's domicile is Australia and, as such, she is automatically a resident of Australia under the domicile test unless she has a permanent place of abode overseas. During the period that Misha rents a flat in the UK, she clearly has a permanent place of abode overseas and will not be treated as a resident of Australia for tax purposes under the domicile test. However, for the two years when she is travelling in Europe and North America, she would not have a permanent place of abode overseas and will be a resident of Australia under the domicile test. · 183-day rule and Superannuation test Not relevant on the facts. In conclusion, Misha would not be a resident of Australia for the three years when she has a flat in UK but would be a resident for the two years when she is travelling. Q 4.6 After Misha finishes her Bachelor of Commerce degree she travels to the UK to work as an accountant for three years. During that time she rents a flat and makes many friends. Her UK salary is paid into a UK bank account. At the end of the three-year period she has saved enough money to travel. Misha then spends a year travelling around Europe and a year travelling around North America. At the end of the five years she returns to Australia. Discuss the residency of Misha.   Answer –   The first issue here is to determine whether Misha is a resident of Australia for tax purposes.   The relevant rules are the residency tests in s 6(1) of ITAA36.   Applying the tests to Misha's situation   Ordinary resident test   From the facts, it would appear that Misha does not "reside" in Australia during the relevant period as she does not demonstrate any of the factors that would point towards her residing in Australia.   Domicile test   From the facts, we can assume that Misha's domicile is Australia and, as such, she is automatically a resident of Australia under the domicile test unless she has a permanent place of abode overseas. During the period that Misha rents a flat in the UK, she clearly has a permanent place of abode overseas and will not be treated as a resident of Australia for tax purposes under the domicile test. However, for the two years when she is travelling in Europe and North America, she would not have a permanent place of abode overseas and will be a resident of Australia under the domicile test.   183-day rule and Superannuation test   Not relevant on the facts.   In conclusion, Misha would not be a resident of Australia for the three years when she has a flat in UK but would be a resident for the two years when she is travelling. 谢谢亲的回惠顾，期待您的下次光临！ 添加客服微信:bbwxnly，购买沟通交流so easy Coursehero｜Scribd｜Studymode｜Oneclass｜Chegg｜Studyblue｜Termpaperwarehouse｜SolutionInn｜Bartleby 谢谢亲的支持，祝您学习愉快:)