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AUSTRALIAN TAX LAW ANSWERS PLEASE PROBLEM Whilst in Hobart, Helena decided to join Evolution Runners, a local running group, to keep active.

AUSTRALIAN TAX LAW ANSWERS PLEASE

 

PROBLEM

Whilst in Hobart, Helena decided to join Evolution Runners, a local running group, to keep active. Through the running groups' charitable connection, Helena also became actively involved in a local charity campaigning for women's rights. During the Christmas and Easter breaks, Maxwell would travel over to Tasmania to visit Helena, where they would then travel across Tasmania exploring the sites. They even took the Spirit of Tasmania to Melbourne over the Easter break.

 

Van Diemen's Architecture Ltd itself was incorporated in England in 1952, however did not begin operating in Tasmania until February 2017. The head office continued to be located in England, with the majority of shareholders residing across the United Kingdom. The board of directors had met monthly at the head office to discuss the objectives and the running of the firm. In February 2017, three key directors transferred to the newly opened Tasmanian office, including a handful of the firms architectural and administrative staff. All decisions continued to be formally signed off in England, however the three Tasmanian directors would determine the direction of the company at a local level.

 

Interest is strong in Tasmania for the architecture firm, with the new clientele base building rapidly. By late-June 2017, the firm had already completed several jobs, subsequently sending out three invoices to clients with 14-day payment terms. In addition, the firm received a prepayment from a fourth client for a job scheduled to be undertaken in July 2017.

 

Due to the continuing demand for Van Diemen's Architecture Ltd, in February 2018 Helena was offered a permanent position. After thorough discussion with Maxwell, they decided to accept. Helena returned for a short duration to Scotland in March 2018 to organize their affairs before return to Tasmania in April 2018 with Maxwell. They retained their properties in Scotland, as well as their joint bank account. Helena negotiated to continue living in the apartment provided by the architecture firm for an additional 3-months to provide time to find an alternative house in Hobart. Maxwell by this point had completed his degree and was submitting applications for graduate roles in Hobart.

 

QUESTION

1.      What is the scenario about?

2.      What is the issue about? - Identify the relevant taxation law issues

 

THANK YOU

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