Residence and Source

Question: Case Study: Residence and Source Answer: Issue According to this case study, it is understood that that Kit is an inhabitant of Australia. In Australia, he works for an American company. His salary is paid through an Australian Bank Westpac Bank'. That is why Kit creates an account in this Australian Bank. He also has a joint account with his wife in an Australian bank. In spite of this Australian citizenship, Kit has also held a Chilean citizenship. It can be possible because kit had a permission of dual citizenship. Kit has to be considered as an Australian citizen because Kit has his house in Australia. That is why; he has to pay tax for it. Most of the time in the year kits wife resides in Australia (Native title, indigenous economic development, and tax, 2010). Though, most of the time Kit use to stays in the coast of Indonesia. He came to Australia on his holiday only. The main issue which is arise in this case study is whether Kit is a resident of Australia or not and is he considered for the purpose of tax calculation in Australia. Even though he has a citizenship of the country Chili, he is also considered as the citizen of Australia because he has a permission of dual citizenship. Kit is employed in an American company, but he is employed in Australia. That is why he considered as the Australian citizen, and his income is considered as assessable income like any other Australian citizen. Law According to the Australian taxation law which is prescribed by the Australian Taxation Office (ATO) have the following conditions which are necessary to check verifying the Citizenship of a person who stayed in Australian. The conditions are as follows In case of an individual who comes to Australia with their family members on different kinds of trips depending on the purpose for the trip The connection of the individual with the country including the family members residing in Australia The family members of that individual live in Australia. In the case when the individual is worked in Australia as a regular employee If the person has any bank account in Australia If the person possesses any property such as land, house etc. in Australia When an individual continues an emigrant business in Australia In Australia there are three taxation rules which are followed by the citizen of Australia and that are the state, federal and local. According to the rules the resident of Australia has to pay taxes for their income in Australia. The taxes are never considered as penalties or service charges by the government. Analysis According to this case study, Kit has the permission for the citizenship of both countries that is Chili and Australia. He got the citizenship of Australia because he is a regular employee in Australia. His salary is paid in his account through an Australian bank Westpac Bank. He is also has a joint bank account with his wife. Even though he has a citizenship of the country Chili, he is also considered as the citizen of Australia because he has a permission of dual citizenship. Beside these all factors, Kit also has his house in Australia (Review of aspects of income tax self-assessment, 2004). This is another reason for which Kit gets the citizenship of Australia. According to the Australian Taxation Act, if an individual purchase any property such as land, house, etc. in austral then he or she also get the citizenship of Australia. The person has to pay tax to the government according to the Australian Taxation Act. Though Kit is employed in an American company, he is employed in A ustralia. That is why he considered as the Australian citizen, and his income is considered as assessable income like any other Australian citizen. Though, most of the time Kit use to stays in the coast of Indonesia. He came to Australia on his holiday only. Most of the year, his wife stayed in Australia. That why it is considerable reason for getting the citizenship of Australia. Regardless of the fact that he is a native of Chile and also has his considerable assets in Chile, he also considered as the citizen of Australia. That is why he has to pay the taxes according to the Australian Taxation Law. In Australia, there are three taxation rules which are followed by the citizen of Australia and that are the state, federal and local (Review of discretions in the income tax laws, 2007). According to the rules the resident of Australia has to pay taxes for their income in Australia. The taxes are basically of 2 types, direct tax, and indirect tax. The taxes are never considered as pen alties or service charges by the government. This amount of money is paid by the citizens to develop and improve the revenue which is generated for the development of the country and also increases the treasure fund of the country. Therefore, it is the responsibility of the entire citizen to pay tax to the country. For this reason, as Kit is considered as an inhabitant or resident of Australia he should also have the responsibility for fulfilling all these terms and conditions for paying the tax. Conclusion According to the terms and conditions of getting the citizenship of Australia and paying tax, kit meet all of the factors. That is why he became the resident of Australia and his incomes are considered as an accessible income. For this reason, according to the rules and regulations of Australian Taxation Office Kit has to pay all of the required taxes for his income in Australia. References Native title, indigenous economic development and tax. (2010). Canberra, A.C.T.: Treasury. Review of aspects of income tax self assessment. (2004). Canberra, A.C.T.: Treasury. Review of discretions in the income tax laws. (2007). Canberra: The Treasury. Tax Laws Amedment (2005 Measures No. 1) Bill 2005. (2005). Canberra: The Committee. The Inspector-General of Taxation in the taxation system. (2002). [Canberra]: [The Board of Taxation].