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Assignment Task 1

Abdullah is a 38 year old Malaysian citizen and recently retired world professional Grand Prix racing car driver. He is single with no dependents. On 1 February 2015 Abdullah accepted a position with Fox Sports Television Australia to commentate on the upcoming professional Grand Prix racing tour. The contract will involve Abdullah broadcasting on location at race events throughout the world. The contract with Sydney based Fox Sports coincides with the current professional racing season (1 April 2015 to 31 December 2015) with an option to extend for the following season if both parties agree.

The contract will require Abdullah to travel overseas with the tour for at least two weeks in every month. He will also spend one week per month at Fox TV's Sydney studio. Abdullah has decided to make Australia his base for the term of the contract. On arriving in Australia on a one-way ticket on 1 March 2015 he secured a 12 month lease on an apartment in Sydney. While in Australia he will lease his fully furnished apartment (in Kuala Lumpur, Malaysia) to friends. His mother and father will store his personal possessions (including his Grand Prix trophies) at their Kuala Lumpur home.

Abdullah is confident he can make a career as a professional sports broadcaster. If the Fox Sports contract is not renewed in January 2016 he intends to seek employment with other sports broadcasting networks either in Australia or internationally.

Required

In the form of a professional correspondence (not exceeding 750 words) advise Abdullah whether at 30 June 2015 he will be classed as a resident of Australia for income tax purposes. Also advise Abdullah how his income will be assessed given both scenarios of him being deemed a resident and a non-resident. Calculations are not required. Ignore any consequences of the Double Tax Agreement between Australia and Malaysia.

Assignment Task 2

Mick is employed fulltime as a lecturer at the University of Newcastle. He lives with his family in Newcastle and lectures at Callaghan and Ourimbah campuses with his office based at Callaghan. He also normally conducts one class at UoN Sydney on a Friday at 12 noon however increased enrolments have meant the scheduling of an additional class on Thursdays from 3pm to 6pm.In past years Mick has driven his private car to Sydney from his home in Newcastle each Friday returning home that same day. However Mick now finds it more convenient to stay overnight at a hotel in Sydney after the Thursday class, returning home after the Friday class. He usually spends $20 having his lunch at a local café before commencing each class. Mick's 4.5 star hotel accommodation costs $220 per night and he usually spends $35 on dinner on Thursday night after the lecture and $15 on breakfast the following morning. Mick travels alone and the University does not provide Mick with any travel or car allowances in relation to teaching in Sydney.

Required:

Advise Mick whether he will be eligible to claim any income tax deductions in relation to the above expenditures. If any amounts are deductible, outline the requirements for Mick to substantiate his claims.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M91270927
  • Price:- $70

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