Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

Jenny is 35 years of age, single and is a professional hairdresser. She was born in Australia, though she frequently travels overseas for extended periods for work purposes. Jenny recently returned to live in Australia on 1 May 2012 after living overseas for the past 14 months. During that time, Jenny travelled to various cities all through Europe to showcase her hairdressing styling and techniques. Jenny stayed at different short-term accommodation facilities.

On 1 April 2011 Jenny opened a German bank account and rented a post office box in Germany to which she redirected some of her business mail to. During her time in Europe, Jenny stayed for a maximum period of 3 months in any one city. She spent the greater part of her time in Germany however as well had relatives in France with whom she stayed for a period of 2 months. Jenny was exceptionally busy with her showcasing for most of the time, though she did always try to take off 1 day per week to go sight-seeing and to soak up the local custom. Prior to her departure for Europe, Jenny was hesitant how long she would spend abroad. Her sole aim was to gain an international reputation and she was prepared to stay abroad until she had done so and only then to return to Australia. Jenny thus terminated the lease of her unit in Bondi Beach, where she had been living for the past 7 years. She as well sold her car and closed two of her short-term deposit bank accounts.

On her return, Jenny decided to set up her own salon due to the success of her trip to Europe. Jenny has now employed 4 full-time hairdressing staff at the salon. Three of these staff is qualified hairdressers and the other is a hairdressing assistant. While Jenny produces the majority of the income, the income produced by the other 3 hairdressers is not insignificant. The hairdressing salon has a large supply of hair care products, like shampoo and conditioners, though most of the income of the salon comes from the fees paid for hairdressing services. Jenny needs customers to pay on the day by cash, credit card or debit card. She does not offer credit to her customers. Most of her customers pay cash, though she does accept credit cards and debit cards. There are 4 large wall-mounted hair dryers and 8 specifically designed basins in the salon.

As part of her professional image, Jenny needs her staff to wear smart designer suits. Jenny stipulates which the suits should be either black or dark blue pin-striped in color and have no decorative logos. Sally, one of the 3 qualified hairdressers, purchased an Armani suit for $770 on 1 June 2010. In order to keep the suit in pristine condition, Sally doesn’t wear the suit for any occasion other than to work at Jenny’s salon. She could have purchased other pinstriped suit for $400, but she preferred the Armani suit.

problems:

1) Will Jenny is classified as an Australian resident or a foreign resident for taxation purposes all through her time overseas? Give full reasoning with reference to legislative provisions and case law to support and validate your answer.

2) What process of tax accounting will Jenny use for her hairdressing salon business? Provide full reasons, citing relevant cases and other authorities for your decision.

3) Will Sally is entitled to claim an income tax deduction for her suit? Cite legislative references, case law and any other pertinent authority for your decision.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M9191

Have any Question? 


Related Questions in Taxation

Assignment1racism and gender-bias in the workplace does it

Assignment 1. Racism and Gender-Bias in the Workplace: Does it still exist? 2. What improvements need to be made to the corporate tax structure in the United States? Discuss a Worldwide Tax versus a Territorial Tax Struc ...

Tax projectour tax project has changed slightly due to the

TAX PROJECT: Our tax project has changed slightly due to the Presidential Election Year. Your project is to prepare a document, no longer than five pages, reviewing and addressing the following: - Tax policy of Democrati ...

Discussion question 1a law practice was incorporated on

Discussion Question 1 A law practice was incorporated on January 1, 2016, and expects to earn $25,000 per month before deducting the lawyer's salary. The lawyer owns 100% of the stock. The corporation (a personal service ...

Financial cost tax accounting assignmentlength 400-500

Financial, Cost, Tax Accounting Assignment Length: 400-500 words including a chart Description Knowing that the company's former CFO and CEO not only got in trouble for fiduciary responsibility violations but IRS issues ...

Criterion 11 which of the following is not a primary tax

Criterion 1 1. Which of the following is NOT a primary tax authority? a. Treasury Regulation b. Revenue Ruling c. a Tax Court Memorandum decision d. an IRS publication 2. Congress' authority to enact an income tax was es ...

Assignmentuse the following information to complete armando

Assignment Use the following information to complete Armando and Lourdes Gonzales's 2015 federal income tax return. You will need the following forms and schedules: Form 1040, Schedule A, Schedule B, Schedule C, Schedule ...

Overviewthe final project for this course is broken into

Overview The final project for this course is broken into two parts. The first part is the creation of a memorandum, which is outlined below. The second part is a PowerPoint presentation, which is outlined in Final Proje ...

Taxone paragraph of writing is required at a minimum for

Tax One paragraph of writing is required at a minimum for each question. Two paragraphs is the maximum 1. How is a single-member LLC taxed for federal income tax purposes? 2. What is a three-factor formula and how does i ...

Assignmentsuppose you are a cpa and you have a corporate

Assignment Suppose you are a CPA, and you have a corporate client that has been operating for several years. The company is considering expansion through reorganizations. The company currently has two subsidiaries acquir ...

Taxation research and communicationthe current tax law

Taxation Research and Communication The current tax law system in the United States has emerged over many years from statutory, administrative, and judicial sources. These sources are continually changing and new laws ar ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro