TLAW603 – Week 4.
TLAW603 – Week 4
Sample Exam Questions
(1) A double taxation agreement (DTA) is designed to prevent double taxation in a number
of ways including:
(a) by allocating the exclusive taxing rights to one of the countries to the DTA;
(b) by prescribing tie-breaker rules used in cases where a taxpayer is subject to tax in
both Contracting States;
(c) requiring the country in which a taxpayer is a resident to provide relief from double
taxation;
(d) All of the above.
(2) The case of Federal Coke Pty Ltd v FC of T is authority for the proposition that:
(a) the character of an amount is determined in the hands of the person who derives it;
(b) the rate of GST is 20%;
(c) only statutory income is taxed under the ITAA97;
(d) the ITAA36 is redundant.
(3) “The decision of the Court in Bywater Investments Ltd & Ord v FC of T [2016] HCA 45
reminds us that ‘central management and control’ is always a factual test. The case
emphasises the importance of the degree of independent and informed judgement
required by a board of directors in order for a company to be treated as a nonresident.”
Do you agree with this proposition? Explain your answer and ensure you provide a
detailed explanation of the facts and issues arising in this case, an assessment of the
High Court’s judgement and refer to the relevant legislative provisions which this case is
concerned with.
