Interest income derived from panama and no tax

Assignment Help Financial Accounting

Reference no: EM133209523

Chong and Sharon are Australian residents for tax purposes and the only directors and shareholders of Xiao Pty Ltd, a non-resident company. They each hold one ordinary share in the company. Xiao Pty Ltd's net profit before tax for the current income year is $150,000. Chong and Sharon want to know the tax implications of the following transactions:

1. The full amount of $150,000 is interest income derived from Panama and no tax has been withheld in Panama on this amount.

2. The amount of $150,000 was trading income derived from Hong Kong and 10% tax was withheld in Hong Kong.

The appropriate legislation advice Chong and Sharon of the tax consequences in each of the two scenarios above.

Reference no: EM133209523

Questions Cloud

Publicly accountable entity and sells specialized equipment : Tim Inc., a publicly accountable entity, sells specialized equipment. The equipment could have been purchased for a cash price of $3,250,000 however,

What amount is Federal gift tax : On what amount is the Federal gift tax computed for the 2021 gift?

Bird cage theory : Does the "Bird cage" theory, when applied to China's Internet policy, constitute a serious threat to development of the 828 e-commerce industry?

Income and taxable income separately : Tony has earned the following incomes and deductions during the tax year. Calculate his assessable income and taxable income separately.

Interest income derived from panama and no tax : The full amount of $150,000 is interest income derived from Panama and no tax has been withheld in Panama on this amount.

Corporate voluntary disclosure : Review the article on Corporate Voluntary Disclosure. What is voluntary disclosure. Reasons behind voluntary disclosure.

Negative balance in payroll liability account : Carters Construction is reconciling their State Unemployment and has a negative balance in their payroll Liability account

Three sub-categories of national defense budget : Identify and describe the three sub-categories of the national defense budget and how they relate to the acquisition process.

What amount is federal gift tax computed : On what amount is the Federal gift tax computed for the 2021 gift?

User Account

All Pages