Vicky and her husband are moving permanently next month from Paris to Australia. They have a...

 

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Vicky and her husband are moving permanently next month from Paris to Australia. They have a joint bank account in France which they leave open for the purposes of receiving the rent which comes from renting out their property in Paris. They rent out what was their family home, and the money is deposited into their bank account in France. The French bank account also earns interest. Vicky and her husband pay tax in France on both the rental property income and interest income. Their accountant in France has advised them that they will not pay tax on this income in Australia because it is sourced in France. Vicky and her husband come to you to confirm whether this advice is correct. Required: Advise your clients, referring to relevant sections of Australian legislation and any relevant Australian tax rulings. Vicky and her husband are moving permanently next month from Paris to Australia. They have a joint bank account in France which they leave open for the purposes of receiving the rent which comes from renting out their property in Paris. They rent out what was their family home, and the money is deposited into their bank account in France. The French bank account also earns interest. Vicky and her husband pay tax in France on both the rental property income and interest income. Their accountant in France has advised them that they will not pay tax on this income in Australia because it is sourced in France. Vicky and her husband come to you to confirm whether this advice is correct. Required: Advise your clients, referring to relevant sections of Australian legislation and any relevant Australian tax rulings.

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Vicky and her husband will pay tax in Australia on the income from France Explanation Vicky and ... View the full answer