Reference no: EM132905308

Question - Hans is a German born national who has lived in Australia for the last 10 years. During that time Hans has derived his income as a musician. In November 2020, Hans signed a contract to perform two concerts in Berlin in January 2021. He returned to Germany to perform the concerts, intending to come back to Australia immediately thereafter. Hans was received more warmly by the concert audiences in Germany than he had ever been in Australia, and he decided in January 2021 to stay there for a year to see if he could make a successful musical career. In May 2021, Hans signed a 5-year contract with a Berlin agent. The contract required him to be available for tours throughout Europe. A consequence of these developments was that Hans decided to abandon his wife and two children who remained in Adelaide. Hans received $A25,000 for his concerts in Berlin in January 2021 -- one half before he left Australia and the remainder immediately after the concerts. He was also paid a $50,000 lump sum in May 2021 when he signed the 5-year contract. Following the signing of this 5-year contract, Hans decided to set up house permanently in Germany.

Explain whether these amounts are assessable, citing cases and relevant provisions of the tax legislation to substantiate your argument.

Would your answer differ if Hans had not set up home in Germany, but moved regularly from one country to another?