Question 1

Rhonda is a non-resident of Australia but a resident of the United States. During the 2020 tax year Rhonda received some dividend income from a US Company paid from the US. Rhonda also received some bank interest paid into her Australian bank account. Which countries have any taxing rights to the dividend and interest income Rhonda has received?

Accepted Answer

The answer of Rhonda is a non-resident of Australia but...

Question 2

Which of the following is not true in relation to the operation of the withholding tax rules?

Accepted Answer

A)  The maximum a taxpayer can claim as a foreign tax credit offset is the Australian tax payable on that income 
B)  Include both the income and the withholding taxpaid in their assessable income 
C)  Claim the greater of the Australian tax payable or the foreign tax paid on the foreign income 
D)  Claim the withholding tax paid as a foreign tax credit offset

Question 3

Thomas is a New Zealand resident who provided some accounting services to an Australian employer for 12 weeks in September 2019. For the rest of 2019/20 Thomas worked for various New Zealand employers. Does Thomas have any Australian tax liability?

Accepted Answer

A)  Yes for the 12 weeks of employment services provided in Australia as the source of that employment income is Australia 
B)  No, as he is a New Zealand resident and so Australia has no taxing rights against him 
C)  Yes, on income derived for the whole of 2019/20 from both Australian and New Zealand sources 
D)  No, as the source of his Australian employment income was New Zealand as that is where he signed the contract to undertake that work

Question 4

Which of the following is not a factor in determining whether the company has its central management and control in Australia?

Accepted Answer

A)  Where monies are invested 
B)  where the governing body of the company meets 
C)  minutes or other documents recording where high-level decisions are made 
D)  where the company's register of shareholders is kept

Question 5

Anh is a non-resident of Australia but who sold some real estate in Australia in March 2020. Does Anh have any tax obligations in Australia in correction with the sale of this Australian real estate property?

Accepted Answer

A)  Yes. As a non-resident he is subject to Australian tax on his worldwide income 
B)  No, as a non-resident he is not subject to any tax in Australia on any income from any source 
C)  Yes. As the real estate property was located in Australia, the source of any gains or losses on that real estate property are Australia and so he is likely to have some Australian tax obligations in respect to the sale of that property 
D)  No, as the source of the sale of the Australian real estate property is not Australia as the source of the income from the sale of that property is where he signs the contract and if this was overseas, then he has no tax obligations in Australia

Exam 2: Residency and Source of Income

Which of the following is not true in relation to the operation of the withholding tax rules?

Thomas is a New Zealand resident who provided some accounting services to an Australian employer for 12 weeks in September 2019. For the rest of 2019/20 Thomas worked for various New Zealand employers. Does Thomas have any Australian tax liability?

Which of the following is not a factor in determining whether the company has its central management and control in Australia?

Anh is a non-resident of Australia but who sold some real estate in Australia in March 2020. Does Anh have any tax obligations in Australia in correction with the sale of this Australian real estate property?