Responses to this assessment task must not exceed 1,500 words. IMPORTANT • You must cite relevant cases, legislative references, and tax rulings (where relevant) to support your answers. • Your...

this is about Australia Taxation law


Responses to this assessment task must not exceed 1,500 words. IMPORTANT • You must cite relevant cases, legislative references, and tax rulings (where relevant) to support your answers. • Your response must also provide reasons that explain and support your answers. • Responses that merely state the facts and decisions in the cases without any analysis of the issues raised will not earn much marks. • Relying on the PPT slides and lecture notes to answer this question will not earn you much marks. Students are expected to read the relevant sections of the prescribed textbook to answer the issues raised in this case study satisfactorily. • DO NOT copy the question or the instructions above in your answers BUSL320 Taxation Law and Practice Assignment Question Rod McLean aged 37 lives in Manly and works as a computer–systems engineer. He is employed at the Macquarie Park office of Softmicro Ltd, a US company that specialises in the development of information systems. In March 2017 Softmicro won a tender contract to install a new computer system for RST Ltd, located in Hong Kong. As a result, on 1 April 2017, Rod was posted to Hong Kong for one month to arrange installation of the system. Due to technical difficulties in the installation, Rod’s stay was extended by a further three months. Initially, his salary of $8,000 per month was paid into the Manly branch of his Westpac bank account. However, from 1 May 2017 his salary was paid into an account he opened at the Kowloon branch of the HSBC Bank, in Hong Kong. Upon completion of his work in July 2017, RST Ltd presented Rod with a return airline ticket to holiday in Paris, together with a voucher to cover his expenses whilst in Paris valued at $8,000. RST Ltd also offered Rod a three-year consulting job with the company with an annual salary of 100,000 and a car. As an incentive to join RST Ltd, and to compensate for his leaving Softmicro and having to move permanently to Hong Kong, he was offered $40,000. This was to be paid in two instalments - $20,000 on joining the firm and $20,000 after one year of service. Rod accepted the offer on 1 September 2017. Prepare a report advising Rod as to the assessability of the above amounts in Australia for the tax years 2018/19 and 2019/20.