Bob, a 23-year-old motor mechanic from Mayfield, NSW, left Australia on 1 June during the current income
Question:
Bob, a 23-year-old motor mechanic from Mayfield, NSW, left Australia on 1 June during the current income year for the purpose of going to Saudi Arabia to work for a period of nine months as a motor mechanic. Bob was single and had lived with his parents. He left almost all his belongings here and hoped to start a full-time university course at Newcastle University in the following March. As was usual with his employer (a company incorporated in Cyprus), he first went to Cyprus to sign a contract of employment. Among other things, the contract provided that all work be done in Saudi Arabia and that payment be made in Saudi Arabia. No Saudi tax was payable on the salary paid, but because Bob signed an employment contract in Cyprus, an income tax of 5% was payable in that country.
Discuss whether, for the current income year, Bob is a resident of Australia.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts