Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Taxation Expert

Question - In June 2016 Tom had signed an agreement in Sydney with XYZ Ltd to act as the company's plantation manager in Brunei until June 2018. At the time of signing the agreement, Tom was advised that it was possible that at the end of his two year contract the company would offer him a one year extension. Tom advised the company, at the time of signing, that he had no definite view of accepting or rejecting the possible extension but would consider it at the end of his two year posting. He rented his house in Sydney for two years.

He arrived in Brunei on 1 July 2016. He and his family resided in a large house they leased near the plantation, which was provided as part of his employment package. His younger daughter Mary, aged 9, accompanied him and his wife to live in Brunei, where she attended boarding school. His older married daughter Anne, aged 23, remained in Australia with her husband.

While in Brunei, Tom and his wife joined the local bridge and golf club. He also rented a holiday apartment at a nearby beach resort for two years. During the time the family was in Brunei, his wife took a part-time job teaching English. In June 2018, Tom was offered a one year extension of his contract, but decided to reject it and returned to Sydney on 10 June 2018. While in Brunei, the rent from his house in Sydney was paid into his interest earning Australian bank account, which he accessed using his Australian credit card. His salary was paid into an interest earning bank account that he had opened in Brunei. He drew upon his Brunei bank account from time to time at local ATMs in Brunei.

On returning to Australia, Tom decided to open an accounting practice as a sole practitioner. His wife assisted him, by acting as the receptionist. Fortunately, he was able to provide a service to a client shortly after beginning business. He billed this client for fees of $8,000 on 27 June 2018, but did not receive the cash payment from his client for these services, until July 2018. This was the only client he billed for the year ended 30 June 2017.

Advise Tom of the Australian taxation issues arising from the above fact situation. Reference should be made to appropriate legislation, case law and rulings. Calculations are not required. Note: Australia does not have an International Double Tax Agreements with Brunei and students are not required to discuss the operation of Brunei taxation law.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M93107106

Have any Question? 


Related Questions in Taxation

Question 1you are working as a tax consultant in mayfield

Question 1 You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following informati ...

Question 1ruby engineering pty ltd ruby was incorporated in

Question 1 Ruby Engineering Pty Ltd [Ruby] was incorporated in 1990 and produced engine components used in the Australian car industry. In 2016 the business and company assets were sold to Diamond Ltd. Under the terms of ...

Taxation theory practice amp law assignment -question 1 -

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Introducation to australian tax laws questions -question 1

INTRODUCATION TO AUSTRALIAN TAX LAWS QUESTIONS - Question 1 - Holly Gordon has retired and derives her income from a series of investments and a part time job at the local cafe. Her income and expenses for the year inclu ...

Tax policy is defined as which taxes the government chooses

Tax policy is defined as which taxes the government chooses to levy, in what amounts and on whom. Elements of this decision are based on both the amount needed to pay for expenditures as well as the effect taxes can have ...

Taxation theory practice amp law assignment -question 1

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Partnership taxable incomepartner d is a 10 percent general

Partnership Taxable Income Partner D is a 10 percent general partner in ABCD Partnership. The partnership's financial records for the current tax year reveal the following: Gross receipts from sales . . . . . . . . . . . ...

Understanding tax returns assessment - prepare tax returns

Understanding Tax Returns Assessment - Prepare tax returns for individuals To complete these activities you are required to: a) Conduct independent research and analysis of relevant Tax Law. b) Access the most up to date ...

Tax policy is defined as which taxes the government chooses

Tax policy is defined as which taxes the government chooses to levy, in what amounts and on whom. Elements of this decision are based on both the amount needed to pay for expenditures as well as the effect taxes can have ...

Taxation assignment -the tax system is not delivering the

Taxation Assignment - "The tax system is not delivering the potential revenue in Sri Lanka. Sri Lanka's per capita income has increased from US$ 720 in 1995 to US$ 3,625 in 2014 but our tax revenue has declined from 20.4 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As