Reference no: EM133062439

Question 1. Fred, an executive of a British corporation specialising in management consultancy, comes to Australia to set up a branch of his company. Although the length of his stay is not certain, he leases a residence in Melbourne for 12 months. His wife accompanies him on the trip but his teenage sons, having just commenced college, stay in London. Fred rents out the family home. Apart from the absence of his children, Fred's daily behaviour is relatively similar to his behaviour before entering Australia. As well as the rent on the UK property, Fred earns interest from investments he has in France. Because of ill health Fred returns to the UK 11 months after arriving in Australia. Discuss residency and source issues.

Question 2. Jenny is an accountant who works in Hong Kong. She is single and lives in Hong Kong with her parents. Until April 2019 her work does not involve travel. At that time she accepts an offer from her employer to travel temporarily to Australia to provide business advice to large numbers of former Hong Kong residents setting up businesses in Melbourne, Sydney and Brisbane. Jenny enters Australia on 25 April 2019. She intends to spend three months travelling between the three cities, staying in various motels. Her employer asks her towards the end of her three months to take up a position in Sydney for a further nine months. In early July, she leases a serviced executive apartment for nine months near her workplace in Sydney. The apartment is her home base during her stay here. She freights more clothing and some personal effects to Australia. Her parents visit her on two occasions. Although based in Sydney, her commitments require some limited travel. On average, Jenny travels at least once a week to meet clients outside Sydney. Is Jenny a resident of Australia for tax purposes?

Question 3. Jill is an Australian resident for tax purposes. She has assessable income of $500,000. She has deductions of $100,000 and franking credit tax offsets of $30,000. What is Jill's tax payable for the 2020-21 income year?

Question 4. Acme Pty Ltd has determined that its assessable income for the year is $789,000 and it has deductions of $300,000. What is Acme's tax payable for the 2020-21 income year? Assume that Acme's turnover is in excess of $50 million.

Question 5. Linley is an Australian resident for income tax purposes. She has taxable income of $277,000. She has been provided with a receipt for an expense in the amount of $10,000. This expense will constitute a deduction. How much tax will Linley save for the 2020-21 income year as a result of the additional deduction?