Question 1 In 2013, Sibelius Pty Ltd entered into a five year contract to supply rutile


Question 1 In 2013, Sibelius Pty Ltd entered into a five year narrow to provide rutile (titanium ore) to Brahms Pty Ltd. Sibelius had alike narrows after a while other purchasers, but its narrow after a while Brahms was its largest narrow, accounting for 75% of its annual profits. In January 2016, Brahms requested Sibelius to efface the narrow forthafter a while on the basis that it had no advance use for rutile. Sibelius agreed to extricate Brahms from the narrow in produce for atonement. Two covenants were entered into. The original extricated Brahms from the narrow in produce for Brahms entering into the remedy covenant. The remedy covenant was betwixt Brahms and Mozart Pty Ltd, the committer corporation of Sibelius. Pursuant to the remedy covenant, Brahms agreed to pay Mozart the sum of $500,000 ‘as atonement for the diminution in the high appraise of the shares held by Mozart in Sibelius resulting from the effacelation of the narrow’. The remedy covenant advance granted for the $500,000 to be remunerated to Mozart in five annual installments of $100,000, the original installment to be remunerated on I July 2016. Consider whether the $500,000 may be assessable pay of Sibelius or Mozart Question 2 When and why was the dividend defilement plan introduced into Australia? Explain little how the plan operates. Requirement 1)Case law 2)Case Ruling 3)Section no Using regard from Principles of taxation law 2017 textbook ISBN:9780455239309

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