On 10 July 2015, Jarrold Alexander was transferred to the Singapore office of his company, Global AIH Ltd, for five years. His wife Rosemarrie accompanied him to Singapore. In Singapore they lived in a house owned by the company and leased their Sydney residence. While residing in Singapore Rosemarrie borrowed $100 000 from the Commonwealth Bank on 1 December 2015, to fund the purchase of 50 000 shares in Global AIH.

During the 2015/2016 tax year Rosemarrie received $5 000 as her share of net rental income (after deductions) from the lease of their Australian home, and $2 500 in fully franked dividends from Global AIH. She incurred no other expenses in deriving the rental income, but her interest payments on the Commonwealth Bank loan amounted to $5 650.

Required:
Advise Rosemarrie Alexander for the Australian tax consequences of these transactions. Refer to the relevant legislation and cases. (Hints: you need to do some research on the tax consequence of dividends paid to a resident and non-resident)

Answer rating: 100% (QA)

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