John, is a designer, who came to Australia in November 2017 onan assignment creating...

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Accounting

John, is a designer, who came to Australia in November 2017 onan assignment creating colorful designs based on the vibrant colorsof the Great Barrier Reef. The project is expected to take six anda half months. John purchased a small boat so that he would be ableto enjoy the islands he is using as inspiration for his designs andto take friends at weekends to the special locations he hasdiscovered. John’s salary is paid into the Australian bank accounthe opened when he arrived. John intends to return to France, hiscountry of domicile, and to his family when the contract is over.His father has agreed to look after all his assets and investmentsfor him while he is on assignment in Australia. John was hopingthat he may be considered non-resident for Australian tax purposesand has come to you for advice. Explain to John the factors thatthe ATO will take into consideration and comment on his likelyresidency status. Explain the tax consequences of being classed aresident or not for tax purposes.

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An individual will be an australian resident of heshe satisfy at least one of the following 1Domincile test The person is having perminant house australia Then he will be considered as resident of australia 2The 183 day test The person is present See Answer

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In: AccountingJohn, is a designer, who came to Australia in November 2017 onan assignment creating colorful...John, is a designer, who came to Australia in November 2017 onan assignment creating colorful designs based on the vibrant colorsof the Great Barrier Reef. The project is expected to take six anda half months. John purchased a small boat so that he would be ableto enjoy the islands he is using as inspiration for his designs andto take friends at weekends to the special locations he hasdiscovered. John’s salary is paid into the Australian bank accounthe opened when he arrived. John intends to return to France, hiscountry of domicile, and to his family when the contract is over.His father has agreed to look after all his assets and investmentsfor him while he is on assignment in Australia. John was hopingthat he may be considered non-resident for Australian tax purposesand has come to you for advice. Explain to John the factors thatthe ATO will take into consideration and comment on his likelyresidency status. Explain the tax consequences of being classed aresident or not for tax purposes.