Frank's Residency & Disco Biscuit Co.: Tax Law in Action

Frank’s Residency & Disco Biscuit Co.: Tax Law in Action.

[image] A green rolling hills with a sunset. • Introduction . Covering about Frank’s situation .covering about disco biscuits .summary.

[image] A field of wheat with tracks in it. Name : Md Rafiur rahman radid Student Id: 235759.

Introduction In this presentation, we will explore two key areas of Australian taxation: Tax residency — using the case of Frank to understand how the ATO determines residency status. Fringe Benefits Tax (FBT) — applying the FBT rules to various scenarios involving the Disco Biscuit Company. These topics are assessed under the Income Tax Assessment Act 1936 and the Fringe Benefits Tax Assessment Act 1986, which help determine tax obligations for individuals and businesses in Australia..

5. Frank’s Tax Residency Status Legal Framework: Determined under Income Tax Assessment Act 1936 and ATO residency tests Residency Tests: Resides Test: Frank migrated with family and established home in Australia Strong ties: family remained in Australia during his overseas work Domicile Test: Permanent home remained in Australia Intent to return after work contract in Germany 183-Day Test: Not met (spent majority of year abroad) Absence considered temporary.

6. Fringe Benefits – Disco Biscuit Co. Legal Basis: Fringe Benefits Tax Assessment Act 1986 Scenarios: Mary (spouse of employee) → FBT applies – car provided to associate Gabby (external consultant) → No FBT – treated as personal income, not a fringe benefit Nigel (salesperson) → FBT applies – employee given luxury car for private use Tristan (managing director) → FBT applies – directors are employees under FBT law.

Summary/conclusion. Frank is likely an Australian tax resident due to strong ties to Australia, despite working overseas. The Disco Biscuit Co. scenarios show that Fringe Benefits Tax applies when cars are provided to employees or their associates for private use..