TAXATION 1 – LAW2453
ASSIGNMENT – SEMESTER 1 – 2018
The phrase limit is roughly 2,000 phrases (nevertheless faculty college students can elect to write down down additional).
Faculty college students ought to make a duplicate of the duty they submit.
Assignments will in all probability be marked down for poor presentation, poor grammar, punctuation and spelling.
The duty must be typewritten and double spaced with a generous margin.
All Faculty college students ought to add a delicate copy via Turnitin on Canvas sooner than eight.ooam on Monday 9 April 2018.(It will in all probability be sooner than programs begin on Monday 9 April 2018). Faculty college students can even should moreover give a troublesome copy to their lecturer in school in the midst of the educating week beginning Monday 9 April 2018. Faculty college students ought to check with their lecturer to see if as well as they require a troublesome copy. Faculty college students must submit the duty on Turnitin using Microsoft Phrase – Not as an Adobe File.
If faculty college students submit their activity late on Turnitin they’ll be penalized (see Course Handbook). If faculty college students are having points submitting on time, they should apply for specific consideration with the actual consideration unit at RMIT.
SUBMISSION DATE: 9 April 2018 (see above instructions)
ABC Ltd is a palm oil agency built-in in Hong Kong the place almost all of its shareholders reside. It has operated palm oil plantations in Brunei since 2010. The entire members of the Board of Directors reside in Australia. The board meets on a month-to-month basis in Sydney. The board of directors exercise routines administration of primary and firm affairs of the company and its protection, along with exercising supervision over operations of all its palm oil plantations.
On 1 July 2015, Peter, an Australian accountant and citizen, grew to grow to be the company’s plantation supervisor in Brunei. In his place as the company’s plantation supervisor, he is empowered to lease and fireside staff, buy raw provides, enter into leases for the rental of plantations, ship palm oil from Brunei to Australia and promote a positive share of producing domestically. His accountability as supervisor would not lengthen to manage of primary and firm affairs of the company or protection nevertheless solely to each day conduct of the company’s shopping for and promoting operations in Brunei.
By 2016, the Brunei operation had grow to be so worthwhile, and had grown to such an extent, that in July 2016 the company’s board of directors decided that among the many selections made on the month-to-month board of directors meeting in Sydney, affecting the company would solely be tentative, and that one in all many Sydney based directors would need to go to Brunei to speak to Peter. All through these discussions ultimate operative selections affecting among the many agency’s common primary and firm protection had been arrived at alongside aspect Peter. The company continued to undertake this kind of decision-making in respect of the company’s operations whereas Peter remained its plantation supervisor. All totally different selections affecting the company’s primary and firm protection continued to be made by the board of directors in Sydney.
In June 2015 Peter had signed an settlement in Melbourne with ABC Ltd to behave as the company’s plantation supervisor in Brunei until June 2017. On the time of signing the settlement, Peter was steered that it was potential that on the end of his two yr contract the company would supply him a one yr extension. Peter steered the company, on the time of signing, that he had no specific view of accepting or rejecting the potential extension nevertheless would give it some thought on the end of his two yr posting. He rented his residence in Melbourne for two years. He arrived in Brunei on 1 July 2015. He and his family resided in an enormous residence they leased near the plantation, which was equipped as part of his employment bundle. His youthful daughter Mary, aged 9, accompanied him and his partner to dwell in Brunei, the place she attended boarding faculty. His older married daughter Anne, aged 23, remained in Australia collectively along with her husband. Whereas in Brunei, Peter and his partner joined the native bridge and golf membership. He moreover rented a trip rental at a close-by seaside resort for two years. In the midst of the time the family was in Brunei, his partner took a part-time job educating English.
In June 2017, Peter was supplied a one yr extension of his contract, nevertheless decided to reject it and returned to Melbourne on 20 June 2017. Whereas in Brunei, the lease from his residence in Melbourne was paid into his curiosity incomes Australian checking account, which he accessed using his Australian financial institution card. His wage was paid into an curiosity incomes checking account that he had opened in Brunei. He drew upon his Brunei checking account sometimes at native ATMs in Brunei.
All through his maintain in Brunei, Peter bought some shares in a Singapore funding agency. The company is built-in in Singapore, the place its Board of Directors meets and receives its dividends from its investments. It invests in mining companies in Australia. Peter obtained dividends from the Singapore Agency whereas he was in Brunei.
On returning to Australia, Peter decided to open an accounting observe as a sole practitioner. His partner assisted him, by performing as a result of the receptionist. Fortunately, he was able to current a service to a client shortly after beginning enterprise. He billed this shopper for costs of $eight,000 on 28 June 2017, nevertheless did not receive the cash charge from his shopper for these corporations,until August 2017. This was the one shopper he billed for the yr ended 30 June 2017.
Advise ABC Ltd, Peter and his partner of the Australian taxation factors arising from the above reality situation. Reference must be made to relevant legal guidelines, case regulation and rulings. Calculations aren’t required.
Phrase: Australia would not have an Worldwide Double Tax Agreements with Brunei and faculty college students aren’t required to debate the operation of Brunei taxation regulation.