In grading this operation, examiners obtain convergence on your referencing to instance law, divert sections of the ITAA 1936 and ITAA 1997 and pay tax rulings posterityd by the Australian Taxation Office. Please see marks allocation beneath. A schedule of references used to rejoinder all enactment operations should be unshaken to the enactment.
In this enactment you are possess impartial resolute to set-on-foot your own tax consulting service. You possess been asked to guide a client on the subjoined posterity. The muniment you totality should be lucid, close and stipulate counsel that may be relied on by the client.
Peter Jones is a British commissioner making a pur-poseate for himself in the ground of repurposing industrial buildings for sojournerial purposes. In June 2017, Peter was approached by Smith Constructions who were craving to quit a new concatenate of commissioner apartments in Australia. The order was very conscious to treat Peter to pur-pose this concatenate and has for-this-reason proffered Peter a one off liquidation of $100,000 to instigate to Australia and unite Smith Constructions. Peter not spurious the proffer. On 1 July 2017, Peter Jones, who was born in and resided in England up until that continuance, arrived in Australia to use up unmeasured date treatment as a commissioner delay theâ€¨company. The one off creed liquidation of $100,000 was hired to him on 15 July 2017. His treatment retrench was for 12 months, delay an non-interference to reiteblame at the end of that order.
Peter is a sepablame perpetrator delay two conclusion. The two conclusion obtain not rustication delay him to Australia but cling delay their grandparents (Peter’s perpetrators). Peter resolute to maintain the issue he owns in England, and divulsion a issue in Australia until such date as his treatment retrench was abundant. Peter suggests to cling in Australia if potential.
On the 23rd September 2017 Peter is transmitted to the order’s service in New Zealand to succor delay a proper contrivance. The contrivance is for closely 9 months and he produce to the Sydney service permanently on the 12 June 2018.
On affecting to Australia, Peter divulsioned out his issue in London for $2,000AUD a month. On 7 July, Peter true a Statement of Pay and Expenditure from his legitimate lands commissioner which showed that as 30 June 2018, the divulsional pay was $28,000AUD including $2,000AUD connected to the month of July 2018. The Statement of Pay and Expenditure modeblame allowable exhaustion sumling $15,000AUD. As portio of his treatment retrench, the order agreed to pay Peter a relocation satisfaction of $5,000 to hide the costs of analysis or storage of his issuehold goods on affecting to Australia. The order besides agreed to pay Peter satisfaction on the costs of his home telephone recital. The satisfaction is hired on a monthly plea, adapted at an estimated blame of $100 per month. As at 30 June 2018, the sum totality hired on the telephone satisfaction was $1,200.
When Peter instigated to Australia, he was most wandering to gather of the OzLottoâ€¨lottery. Over the years, Peter patent clear a ‘system’ which he believed would strengthen him to win the Lotto jackpot. His scheme was domiciled on a dismode that he had delay a clairvoyant, who told his that his auspicious collection would be the parentage of his conclusion, and it confused rotating the collection of his conclusion’s parentagedays so that a new set of collection of generated. He muniments his scheme each week to maintain trace of the collection she has used. On 13 May 2018, Peter is ecstatic when his scheme finally succeeds in selecting the primeval disunion collection, and as a fruit, he wins $1 pet AUD.
Unsure of what to do delay his specie, Peter seeks counsel from a canvasser who properises in taxation law for counsel on a decent corpoblame texture that obtain stipulate the best instrument for managing this specie and ensuring that his conclusion are financially armed in coming. His canvasser guided there were two fairly test, commercially not spurious non-interferences that Peter could appropriate from. The textures are correspondent, besides, one of these textures generally fruits in a inferior tax burden and for this Peter chose this non-interference. He hired the canvasser $2,000AUD for this counsel and impressment of the appropriate muniments. He has not set up the appropriate texture yet and does not suggest to do so until August 2018.
Peter’s stipend for the year was $100,000AUD. 75% of this stipend was earned while started in New Zealand. In union to the over, Peter incurred the subjoined expenses during the year:
• $2500 in registration fees for a convocation on Australian pur-poses that was proffered by an assiduity properist; â€¨
• $1500 mode fees for a “Certificate in Australian Design”, proffered by the Australian Institute of Architects. â€¨
• A endowment of $100 specie, hired to the Royal Brisbane Hospital; â€¨
• $50 to support to the repository “Australian Architecture”; â€¨
• $1500 to the Southern Cricket Club. The club’s activities are simply connected to â€¨the fruit of lad cricketers in the association. â€¨
• $1500 to Hunter Sports Club. Hunter Sports is a sports conglomeblame that â€¨makes real totalitys of specie from poker machines, invigoration and goods fruit. They are registered as a deductible endowment repository on the Australian Service Register. â€¨
1. In the frame of a functional despatches you are required to guide Peter Jones of his taxation residency status. â€¨
2. Assuming he is an Australian sojourner for taxation purposes estimate his taxable pay for the pay tax year achievement 30 June 2018. (Justify all decisions to conceive or not conceive pay/exhaustion etc) â€¨