BUSL320 Taxation Law and Practice Take-home Assignment
2018 Session 1
Total Marks = 20
Jacinta Wells, aged 33 lives in Melbourne and works as a management consultant. She is employed by Staedler Ltd, an American company specialising in the development of information systems for the publishing industry. In March 2016 Staedler won a tender contract to install a new computer system for EZI Ltd, located in Singapore. As a result, on 1 April 2016, Jacinta was posted to Singapore for one month to arrange installation of the system. Due to technical difficulties in the installation, Jacinta’s stay was extended by a further three months. Initially, her salary of $8,000 per month was paid into a bank account in Melbourne. However, from 1 May her salary was paid into a Singapore bank account.
Upon completion of her work in July 2016, EZI presented Jacinta with two airline tickets and voucher for a holiday in London valued at $8,000. EZI also offered Jacinta a three-year consulting job with the company with an annual salary of 100,000 and a car.
As an incentive to join EZI, and to compensate for her leaving Staedler and having to move permanently to Singapore, she 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.
Jacinta accepted the offer on 1 September 2016.
Prepare a report advising Jacinta as to the assessability of the above amounts in Australia for the tax years 2016/17 and 2017/18.