Jason has been transferred to Australia from Vietnam by the company he work for. Jason arrived in October 2021. He has rented a place in Melbourne for the duration of his stay in Australia. He was born in Vietnam and he has maintained the family home there and the family has remained in Vietnam to complete his education. Jason maintains bank accounts in Vietnam. He has earned AU$1,500 equivalent from investments in Vietnam. He was paid the equivalent of $25,000 Australian dollars during the financial year prior to coming to Australia. He will not be required to pay tax in Vietnam on any of these amounts. He has also set up a bank account in Australia earning $500 interest in this taxation period. He is wanting to purchase property if offered a permanent local job and it is his intention to stay in Australia if this eventuates and the family would join him at the end of the school year. Jason received $75,000 PAYG from his employer for the year to date. He is also paid an annual mobile telephone allowance of $500. Jason started an online shop during the year importing products from Vietnam. He does not have a formal office address but operates out of his unit. He does not have any formal business structure and trading is limited. Jason considers this to be a hobby to fill in spare time and therefore not necessary to report in his tax return. By 30 June 2023 Jason had earned $5000 above costs from this activity,

In November 2022, Jason sold Australian shares purchased over 12 months previously for a net gain on $10,000. In February 2023, Jason sold shares purchased one month previously for a net gain on $5,000. Provide Jason with advice concerning the following:

1. Discuss if you consider Jason to be a resident for taxation purposes. He considers that he do not have to report income from the Vietnam in his Australian tax returns because he considered this had nothing to do with Australia.

2. In the 2023 tax year, Jason does not consider he need to report any profit from his store activity because he considered this to be a hobby. Advise him by reference to tax cases, legislation and or rulings whether this is correct.

3. Advise Jason of his likely tax payable for the 2023 year. Please include relevant legislation.

Answer rating: 100% (QA)

1 Residency for Taxation Purposes Based on the information provided Jason may be considered a resident of Australia for tax purposes Heres why Physica... View the full answer