BTW3221 Assignment 1

*What was the compensation payment for?
-If the compensation payment to Nathan of $200,000 was made for loss of income, then it may be considered income, as with FCT v
Dixon1. Whereas compensation payments made for loss of income earning ability will generally be capital, as with Coward v FCT2
b)
*How long does she plan to stay in Vanuatu?
*Does she plans to live permanently in Vanuatu?
*Does she have a partner or family living in Australia, or moving with her?
-These questions are to help define the Statutory definition of residence under s 6(1), ITAA 363, which will decide whether or not
she must pay tax on her income.
6-5(2) – If you are an Australian resident, your assessable income includes the ordinary income you derived directly or indirectly
from all sources, whether in or out of Australia, during the income year.
6-10(4) – If you are an Australian resident, your assessable income includes your statutory income from all sources, whether in or
out of Australia.