Alternative assessment

Please refer to cases, legislation, tax ruling and principles to answer the question.

Discuss whether the following comes within the meaning of “resident” as defined in s 6 of the ITAA 1936. 

1. A student from Malaysia who arrives in Sydney on 1 February during the current income year. The student proposes to undertake a degree in medicine which will take five years to complete. Upon completion the student must return to Malaysia and work for a hospital for a period of at least five years.

2. A company incorporated in the Cook Islands to carry out manufacturing operations in the Cook Islands. The company has its central management and control in Australia and its voting power controlled by Australian residents.

3. A 31-year-old engineer born in Melbourne who leaves Australia for the first time on 24 December during the current income year to take up a three-year contract with a construction company in Kuwait. If circumstances permit, she may negotiate a further three-year contract on completion of the present contract. She is indifferent about returning to Australia since she has no dependants in Australia.

4. Describe what are the four key rules to define a resident for income tax purposes?