Chong and Sharon are Australian residents for tax purposes and the only directors and shareholders of...
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Chong and Sharon are Australian residents for tax purposes and the only directors and shareholders of Xiao Pty Ltd, a non-resident company. They each hold one ordinary share in the company. Xiao Pty Ltd's net profit before tax for the current income year is $150,000. Chong and Sharon want to know the tax implications of the following transactions: a) the full amount of $150,000 is interest income derived from Panama and no tax has been withheld in Panama on this amount. (2.5 marks) b) the amount of $150,000 was trading income derived from Hong Kong and 10% tax was withheld in Hong Kong. (2.5 marks) Required Referring to the appropriate legislation advice Chong and Sharon of the tax consequences in each of the two scenarios above. Chong and Sharon are Australian residents for tax purposes and the only directors and shareholders of Xiao Pty Ltd, a non-resident company. They each hold one ordinary share in the company. Xiao Pty Ltd's net profit before tax for the current income year is $150,000. Chong and Sharon want to know the tax implications of the following transactions: a) the full amount of $150,000 is interest income derived from Panama and no tax has been withheld in Panama on this amount. (2.5 marks) b) the amount of $150,000 was trading income derived from Hong Kong and 10% tax was withheld in Hong Kong. (2.5 marks) Required Referring to the appropriate legislation advice Chong and Sharon of the tax consequences in each of the two scenarios above.
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Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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