IntroductionTaxation can be considered one of the main factors that contribute to increasing a country's income. Even in Australia, taxes are paid not only by the local state, but also by the federal governments. It can be paid individually or as a company. Even though the tax procedure brings many benefits to the state, people and companies are not willing to pay, because it is not beneficial to their profit. They are the people who have to pay personal income taxes, capital gains taxes, goods and services taxes, property taxes, departure taxes, excise taxes, customs duties taxes and payroll taxes, etc. . for the benefit of their state. In such a situation, controlling tax fraud is a determinable problem. To address these types of issues, the Australian Government established the "Australian Taxation Office" (ATO). The ATO has introduced the 'Annual Taxable Payments Report' which all businesses in the building and construction sector should submit to the ATO on 21 July each year to avoid tax fraud.PartRequirement OneThe LawThe Interpretative Chapter (S6(1)) of Income Tax The Assessment Act 1936 defined "resident of Australia" as A. A person resident in Australia other than a company includes:I. A person whose dominant position is in Australia, refuses only when a Commissioner has reliable evidence that the person is outside Australia.II. A person who has actually been in Australia, continuously or intermittently, for more than half the income year, refuses only when a Commissioner has reliable evidence that the person is outside Australia and that person has no intention of reside there with in Australia.o;III. Who is ;a) A member of the established pension scheme...... half of the document ......to.gov.au,. (2014). IT 2607 (Withdrawn) - Income Tax: Residence Status of Visitors and Migrants (as of August 16, 1990). Retrieved May 14, 2014, from http://law.ato.gov.au/atolaw/view.htm?locid=%27ITR/IT2607/NAT/ATO%27&PiT=19940825000001Law.ato.gov.au. (2014). IT 2650 - INCOME TAX: RESIDENCE - PERMANENT PLACE OF HOME OUTSIDE AUSTRALIA (As at 8 August 1991). Retrieved May 14, 2014, from http://law.ato.gov.au/atolaw/view.htm?Docid=ITR/IT2650/NAT/ATO/00001Law.ato.gov.au. (2014). TR 95/7 - Income tax: landfill sales (as of 29 November 2006). Retrieved May 14, 2014, from http://law.ato.gov.au/atolaw/view.htm?locid=%27TXR/TR957/NAT/ATO%27 talktoataxpert. (2013). Tax residency for natural persons – the domicile test. Retrieved May 14, 2014, from http://talktoataxpert.wordpress.com/2013/03/10/tax-resdidency-for-individuals-the-domicile-test/TP v. Jenkins, 82 ATC 4098 (1982).