Introduction to Taxation - Tax Residency & Source of Income

These flashcards cover key concepts related to tax residency and source of income based on the lecture notes.

Tax Residency

Determines liability for tax irrespective of income source.

Permanent Place of Abode

A place where a taxpayer habitually resides, not solely defined by having a dwelling.

Non-resident

An individual who is not considered a tax resident and is generally taxed only on income sourced from New Zealand.

Worldwide Income

Income that residents are taxed on, regardless of source.

Double Taxation Agreements (DTAs)

Treaties between countries to avoid taxing the same income in both jurisdictions.

Foreign Tax Credit

A credit allowed against New Zealand income tax for foreign income tax paid on the same income.

Short Term Visit Exemption

Exemption from New Zealand tax for individuals visiting for 92 days or less.

Recognised Seasonal Employer Scheme (RSE)

Allows for the entry of non-resident seasonal workers into New Zealand for specific industries.

Tax Exemption

A provision that allows certain types of income to be exempt from taxation.

Income Tax Act 2007

The legislation that outlines tax obligations and classifications in New Zealand.

Source of Income

The origin of income that determines tax liability under New Zealand law.

Bright-line Rules

Supplementary rules used to determine residency based on days present in New Zealand.

Scottish Law

A case law reference concerning the concept of permanent place of abode.

Contextual Residency

Determined by various factors such as ties to New Zealand and duration of stay.

Australia Tax Residency Case E46

Legal reference validating source of income based on conditions set in New Zealand.

Liability for Tax

Obligation to pay tax based on residency status and income source.