After Misha finishes her Bachelor of Commerce degree (in Australia) she travels to the UK to...
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After Misha finishes her Bachelor of Commerce degree (in Australia) she travels to the UK to work as an accountant for three years. During that time, she rents a flat and makes many friends. Her UK salary is paid into a UK bank account. At the end of the three-year period, she has saved enough money to travel. Misha then spends a year travelling around Europe and a year travelling around North America. During that time, she sells her shares in BHP and makes a capital gain of $1 million. She is very happy because she has been told by a friend that she will not have to pay income tax on that capital gain. Her income tax would be approximately $240,000. At the end of her travels, she returns to Australia. Required Discuss the residency of Misha. Is she liable to pay income tax on the capital gain? Your answer should focus on Misha's residence and liability to pay tax in Australia. After Misha finishes her Bachelor of Commerce degree (in Australia) she travels to the UK to work as an accountant for three years. During that time, she rents a flat and makes many friends. Her UK salary is paid into a UK bank account. At the end of the three-year period, she has saved enough money to travel. Misha then spends a year travelling around Europe and a year travelling around North America. During that time, she sells her shares in BHP and makes a capital gain of $1 million. She is very happy because she has been told by a friend that she will not have to pay income tax on that capital gain. Her income tax would be approximately $240,000. At the end of her travels, she returns to Australia. Required Discuss the residency of Misha. Is she liable to pay income tax on the capital gain? Your answer should focus on Misha's residence and liability to pay tax in Australia.
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Answer Explanation i From the facts it would appear that Misha does no... View the full answer
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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