QUESTION 1: 20 marks, 20% of the subject
Australian subject and tech inventiveness, Marty Goodson, set up “Planks Pty Ltd”, a tech profession in Silicon Valley USA in 2012 amplifying new platforms for web designers and companies throughout the earth. He incorporated the guild in the USA and consequenced five portion-outs to himself and five portion-outs to five of his friends. His friends now rest in the US, Europe, Asia, Australia, and New Zealand. Each portion-out was compensation $100,000. Marty and his team used the $1,000,000 equity consummate to amplify a auspicious tech guild in simply a few years.
During the 2012/2013 financial year, Marty’s pay was $100,000, and he did not yield to Australia. During the 2013/2014 financial year, Marty’s pay was $200,000 and he yielded to Australia during the Christmas age for immodest weeks to waste age after a while his dowager, senior, and sister. His sister and her mate speed in his restntial home fissure detached. He met after a while his accountant to examine the foundation of his three retail investment properties in Brisbane, Sydney, and Melbourne.He also animated a friend’s birthday face and bare in passion. During the 2014/2015 financial year, Marty’s pay was $400,000 and he yielded to Australia from the 1stSeptember to the 1st April to waste age after a while his girlfriend. During the 2015/2016 financial year, Marty earned $100,000 anteriorly he yielded to Australia permanently to espouse the passion of his conduct and begin a race.
During the 2012/2013 financial year, Marty was the unique controller and made all the address decisions for the guild. The guild made $1,000,000 acquisition. During the 2013/2014 financial year, the guild ample and the portion-outholders appointed a consultation of controllers who all rest in the USA. However, it was widely productive by the staff that Marty stagnant made all the material decisions. The guild made $10,000,000 acquisition. During the 2014/2015 financial year, Marty was appointed managing controller. From 1stSeptember to the 1stApril, Marty made all his address decisions from Australia, and carried out all associated profession activities such as signing contracts,and trading Platforms from Australia. The guild made $25,000,000 acquisition. During the 2015/2016 financial year, Marty resigned as managing controller, sold his portion-outs to another tech guild for $50,000,000, and yielded to Australia a very deep man. The guild made $50,000,000 acquisition.
Solve the aftercited consequences:
a. Is Marty an Australian restnt for tax purposes? (5 marks)
b. Is Planks an Australian restnt guild for tax purposes?(5 marks)
c. If any, count the Australian tax obligation relating to Marty’s tenure pay?(5 marks)
d. If any, count the Australian tax obligation relating to Planks’ guild acquisition?(5 marks)
QUESTION 2: 20 marks, 20% of the subject
Rommy bought a dominion attribute in sylvan New South Wales in 2000 for $500,000. Initially it was used as a weekend after a whiledrawal and following as a weekend limp farm unresisting a relatively paltry measure of grapes which made a few crates of after a whileholding attribute wine.
Rommyultimately drank 5 boxes throughout the year, gave 10 boxes far to friends, sold another 20 boxes at the topical trade on the one cause he had a stall, and sold another 20 boxes on the border of the route outborder his attribute after a while the countenance of an fairness box. Each bottle was compensation $20. In 2015, Rommy subdivided his attribute and sold it for a completion compensation of $1,500,000.
Solve the consequence as to whether Rommy should involve any financial amounts in his assessable pay.