Explain how nidas australian residency status would affect

Assignment Help Taxation

Reference no: EM131968499 , Length: word count:3200

Taxation

Question one

Nida was born in Vietnam and operated a successful business there. In June 2017 she was granted a visa to work in Australia and she arrived with her family with a possible intention to eventually migrate here and start a business.

She purchased a family home in Melbourne where her partner and children reside. The children are enrolled at a local Melbourne school.
Nida is still an active partner in a business in Hanoi and has substantial investments there which required her to be absent from Australia for some of the 2017/18 income year. During her absence, she lived in her Hanoi apartment and maintained her social and cultural interests.
During the year Minh has spent 120 days in Australia and by 30 June 2018 she has not commenced establishing a business in Australia, nor has she formed an opinion on whether she wishes to settle permanently here.

Required:

1. Advise Nida on whether she would be regarded, for income tax purposes, as being a resident or a non-resident of Australia during the year ending 30 June 2018. Explain your reasoning using legal precedent.

2. Explain how Nida's Australian residency status would affect the assessability of her Vietnamese business and investment income in Australia.

Question two

In 20002 Hassan inherited a small family farm valued at $600,000. The farm was located about 45 kilometres from central Melbourne. By 2015 Melbourne had expanded and the farm property had become very valuable as a potential residential area.

In 2016 Hassan realised that the value of the property had increased significantly. Hassan also decided that it was time to retire and his adult children had no desire to take over the farm. He discussed the situation with his accountant who advised him to discuss his options regarding the sale of the farm with a property developer. Following that meeting he arranged a meeting with a town planner an architect and to discuss what options he had in regard to selling the farm.

The advice that he received suggested that he should cease farming and subdivide the land, put in roads and footpaths and start building houses which he could then sell.

Hassan proceeded to implement this plan and he appointed the various contractors required to do the work.
As the houses were built Hassan and a real estate agent organised their sale. During the year ending 30 June 2018 Hassan had built and sold twenty houses He made a profit of $300,000 for each house sold.

Required:

1. Advise Hassan on the alternatives that the proceeds of the sale of the town houses could be assessed on under the Income Tax Assessment Act.

2. Discuss which of those alternatives are likely to apply to Hassan.

Reference no: EM131968499

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Reviews

len1968499

5/3/2018 5:14:56 AM

Summarise the main reasons for your conclusion 4 marks Does not identify the reasons for the conclusion Presents a coherent conclusion but does not address some significant matters Presents coherent summary of the conclusion with some minor errors or omissions. Presents and discusses very thoroughly the conclusion issues with some minor errors or conclusion Presents and discusses very thoroughly all major and minor issues concerning the conclusion Presentation and organisation of work in a logical manner 3 marks Analysis is poorly organised and does not flow effectively Analysis is reasonably well organised and flow is adequate Analysis is good and well organised and flow is adequate Analysis is very good and well organised and flow is effective Analysis is outstanding and very well organised and flow is very effective

len1968499

5/3/2018 5:14:51 AM

2 The issues that had to be decided 4 marks Issues are not addressed or are addressed inappropriately Addresses most of the issues but overlooks a few minor ones Addresses most of the major and some minor issues Addresses most major and minor issues Addresses all of the major and minor issues 3 The arguments for and against each issue you identified 6 marks Does not give an accurate explanation of the arguments for each issue Gives a satisfactory explanation of the arguments for each issue with minor errors or omissions Gives a good explanation of the arguments on each issue with some minor errors or omissions Gives a very good explanation of most of the arguments on each issue Gives an excellent explanation of all the arguments on each major and minor issue

len1968499

5/3/2018 5:14:47 AM

Groups: The assignment is to be prepared in groups of two - three students. Presentation: It is your responsibility to submit your assignment on the due date. It is recommended that you retain a copy of your assignment. Use the attached rubric as a guide as to how to prepare your submissions. Assignment Rubric N 0-49% P 50-59% C 60-69% D 70-79% HD 80-100% CRITERIAS 1 Summary of the key facts 3 marks Facts are not identified or are identified inappropriately Overlooks or inappropriately identifies a few of the facts and some of the minor facts Identifies most of the major and some minor facts Identifies most of the major and minor facts Addresses all the major and minor facts

len1968499

5/3/2018 5:14:36 AM

ACC30005 Taxation Semester one Second Assignment Due date: Monday 7 Submission: A hard copy of your assignment can be submitted An Assessment Cover Sheet must be submitted with your assignment. The standard Assessment Cover Sheet is available from the Current Student’s web site. Important: The assignment should be written in your own words. The use of unacknowledged directly copied material may result in your assignment not being marked. Marking: Each question will be marked out of 20 and the total marks will be converted to a mark out of 25 Assignment length: 3,000 – 3,500 words

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