Tax law case study | Accounting homework help

  

Case 1

Sinclair Pondage at all relevant times held a German passport. From the time of his first visit Australia in 2007 until the end of the 2016 income year, he held a visa which permitted him to live and work in Australia.

During the time he was in Australia, Sinclair worked under contract as a marine engineer on a sea-going barge owned by an Australian company. Subsequently, the barge was leased to a Malaysia-based company, Ocean Development Ltd (OD), for use in carrying out work in China. Sinclair accepted employment with OD and left Australia on 8 July 2015, leaving his son and wife in Australia. He worked for Ocean Development Ltd for nine months in China and earned AUD $90,000. He then terminated his contract and returned to Australia where he stayed for the rest of the income year. On his arrival back in Australia he entered into a partnership business with his wife. 

Accommodation provided for Sinclair in China by his employer was of a temporary or transitory nature in the form of single men’s quarters or barracks.  Meals were also provided. Ocean Development Ltd.’s office in Malaysia paid Sinclair’s wages into his bank account in Australia, after deducting tax required to be paid in Malaysia. Sinclair paid no income tax in China. Sinclair’s assets in Australia are his home in Sydney, an investment residential unit in Randwick, a super policy with AMP, listed shares, bank accounts and membership of a local golf club. Sinclair intended to be absent from Australia for approximately nine months and was in fact away for that period only.

Required:

For the 2015/2016 tax year:

1) Is Sinclair a resident or non-resident of Australia? Refer to the relevant legislation and cases.    (10 marks)

2) Determine the source of income Sinclair received while he was working in China? (6 marks)

Question 2

On 10 July 2015, Jarrold Alexander was transferred to the Singapore office of his company, Global AIH Ltd, for five years. His wife Rosemarrie accompanied him to Singapore. In Singapore they lived in a house owned by the company and leased their Sydney residence. While residing in Singapore Rosemarrie borrowed $100 000 from the Commonwealth Bank on 1 December 2015, to fund the purchase of 50 000 shares in Global AIH.

During the 2015/2016 tax year Rosemarrie received $5 000 as her share of net rental income (after deductions) from the lease of their Australian home, and $2 500 in fully franked dividends from Global AIH. She incurred no other expenses in deriving the rental income, but her interest payments on the Commonwealth Bank loan amounted to $5 650.

Required: 

Advise Rosemarrie Alexander for the Australian tax consequences of these transactions. (Hints: you need to do some research on the tax consequence of dividends paid to a resident and non-resident) (14 marks)

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more