Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to...

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to work on a shortterm project to assist with the establishment of a branch office of the company in Australia. Pablo works in Australia for one month. Throughout this period, his salary was paid into his Portuguese bank account. During the year, he earned the equivalent of A$120,000 from his employment. Does Pablo have to pay Australian tax on any of his salary?

Expert Solution

Answer:

Rule: Must apply residency s.6(1) ITAA36 and source (s.6-5, s.6-10 ITAA 97 to ascertain what

income Australia can tax). Superannuation test not applicable based on facts to ascertain what

income to tax.

Application and Analysis

Facts Resides Test Domicile Test 183-day Test

Physical Presence 1 month 1 month 1 month

.

Conclusion:

Pablo has all the family ties, financial ties and place of abode outside AU. He fails all the test. The one-month income source will be taxed in AU, but other 11 months will not be taxed in AU (French). He could be suffered from double taxation for the 1 month working between AU and Portugal. There is no DTA, so Pablo should rely on the Portuguese FITO.

ekkarill92 answered 1 year ago

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to...

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to work on a shortterm project to assist with the establishment of a branch office of the company in Australia. Pablo works in Australia for one month. Throughout this period, his salary was paid into his Portuguese bank account. During the year, he earned the equivalent of A$120,000 from his employment. Does Pablo have to pay Australian tax on any of his salary?

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to...

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to work on a short-term project to assist with the establishment of a branch office of the company in Australia. Pablo works in Australia for one month. Throughout this period, his salary was paid into his Portuguese bank account. During the year, he earned the equivalent of A$120,000 from his employment. Does Pablo have to pay Australian tax on any of his salary? Answer in...

I'm a resident in Australia and after singing an agreement with my company In Australia, to...

I'm a resident in Australia and after singing an agreement with my company In Australia, to work for a company in France, and my company provided me with a house to stay for the two years im working there as a employment package. Will I be considered an Australian resident or a non-resident, for tax purposes while working in France? Would the leased house that has been provided by my company as an employment package make me a non Australian...

Alex is resident of the UK for tax purposes. He lives in Australia and had $90,000...

Alex is resident of the UK for tax purposes. He lives in Australia and had $90,000 assessable income from Australian sources in 2019/2020. He does not have any allowable deductions. Required: a- What is Alex’s taxable income? b- Calculate Alex’s tax payable.

Jerome is a resident citizen employed by TW corporation, Inc. He received the following from his...

Jerome is a resident citizen employed by TW corporation, Inc. He received the following from his employer during 2018: Basic compensation income P800,000 13th month pay 75,000 Productivity incentive pay 12,000 Christmas bonus 25,000 Uniform allowance 15,000 Actual medical allowance 10,000 Rice subsidy 24,000 compute taxable income?

Sian Suds (a resident of Australia) and Luke Suds (a non-resident) own a handcrafted soap shop...

Sian Suds (a resident of Australia) and Luke Suds (a non-resident) own a handcrafted soap shop in partnership, and trade as ‘Suds’ Soaps’. Gross income for the current income year is $40,000. $8,000 of this amount was made on Suds’ Soaps’ sales outside Australia. No expenses are incurred for these sales. Business expenses of $25,000 include a salary of $5,000 paid to Sian. All expenses relate to Australian source income. Required B Assume that the assets of Suds’ Soaps...

Q1 Miss Law, a Hong Kong resident, is employed by an overseas airline company as air-hostess....

Q1 Miss Law, a Hong Kong resident, is employed by an overseas airline company as air-hostess. She stayed in Hong Kong for 60 days, 48 days and 75 days during the years of assessment 2016/17, 2017/18 and 2018/19 respectively. Her Hong Kong salaries tax position is: Select one: a. She is not liable to salaries tax for any year of assessment. b. She is liable to salaries tax for the year of assessment 2018/19. c. She is liable to salaries...

QUESTION 7 Flying Kangaroo Ltd is an Australian resident company that provides air services between Australia...

QUESTION 7 Flying Kangaroo Ltd is an Australian resident company that provides air services between Australia and Canada. It has also reached an agreement with the Canadian government that allows it to fly a short haul domestic flight in Canada. The profits of the company are as follows: Flights between Australia and Canada - $15,000,000 Domestic Flights within Canada - $700,000 Article 8 of the DTA between Australia and Canada relevantly provides: Profits from the operation of ships or...

Suman was a resident of Australia and gained a number of assets over the 40 year...

Suman was a resident of Australia and gained a number of assets over the 40 year since his graduation. These were: a. On 1st July 1990 he bought his home at Burwood for $400,000 and lived there with his wife and children until he sold it on 1st June 2019 for$1,200,000. b. Then, on 1st January 2000, Suman had bought a vacant block of land for $150,000 and since that date, he has paid rates and taxes totalling $50,000 on...

Amandeep born in India and migrated to Australia. He lives in Australia permanently. He still holds...

Amandeep born in India and migrated to Australia. He lives in Australia permanently. He still holds Indian passport. Amandeep works with the New Zealand Princess Cruises tours and most of the income year is in New Zealand. He signed an employment contract for this position in the company’s Australian office in Sydney. Amandeep has two kids that are living with his wife Sandeep in Sydney. Three years ago, Amandeep purchased a unit apartment in Sydney. Amandeep and his wife holding...

Question

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to...

Solutions

Expert Solution

Related Solutions

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to...

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to...

I'm a resident in Australia and after singing an agreement with my company In Australia, to...

Alex is resident of the UK for tax purposes. He lives in Australia and had $90,000...

Jerome is a resident citizen employed by TW corporation, Inc. He received the following from his...

Sian Suds (a resident of Australia) and Luke Suds (a non-resident) own a handcrafted soap shop...

Q1 Miss Law, a Hong Kong resident, is employed by an overseas airline company as air-hostess....

QUESTION 7 Flying Kangaroo Ltd is an Australian resident company that provides air services between Australia...

Suman was a resident of Australia and gained a number of assets over the 40 year...

Amandeep born in India and migrated to Australia. He lives in Australia permanently. He still holds...