21. Facts: Earnest and Old (EO), is partnership established under the laws of the Philippines. Nicanor, a Filipino residing in Manila, is working as a Junior auditor of EO. He was assigned by EO to work in Australia for 3 months to audit one of its clients. EO paid Nicanor the amount of P 30,000 per month as his salary. S1: The salary earned by Nicanor is an income derived from sources within the Philippines. S2: The salary earned by Nicanor is taxable. Group of answer choices a. Only S1 is true b. Only S2 is true c. Both are true d. Both are false

21. Facts: Earnest and Old (EO), is partnership established under the laws of the Philippines. Nicanor, a Filipino residing in Manila, is working as a Junior auditor of EO. He was assigned by EO to work in Australia for 3 months to audit one of its clients. EO paid Nicanor the amount of P 30,000 per month as his salary. S1: The salary earned by Nicanor is an income derived from sources within the Philippines. S2: The salary earned by Nicanor is taxable. Group of answer choices a. Only S1 is true b. Only S2 is true c. Both are true d. Both are false

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 48P

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Horatio, a citizen and resident of Ireland, is an equal partner with Imogene, a US citizen, in a consulting firm operating out of a Miami office and serving clients located in Florida. Under the terms of the K agreement, Horatio and Imogene are to share equally in profits and losses. During the course of the year, Horatio devotes 100 days to the venture, but works primarily at home in Dublin and communicates with his partner and his clients by telephone, fax, and Internet. In fact, Horatio is actually in the United States only 10 days during the year. During the year, the K earns net income of $200,000, all of which derives from the provision of consulting services by the K to clients in the United States. All of the K income is reinvested in the business and none is distributed to the partners. Horatio has no other economic involvement in the United States. To what extent, if at all, will Horatio be subject to US income taxes for the year?
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Mr Lee is a Korean living in Korea. He is an employee of K(Korea) Ltd and a non-executive director of K(HK) Ltd. K(Korea) Ltd is a Korean company carrying on business in Korea, while K(HK) Ltd is a company managed and controlled in Hong Kong. During the year ended 31 March 2021, Mr Lee received director’s fee of $730,000 from K(HK) Ltd. He visited Hong Kong for 20 days to attend the director meetings of K(HK) Ltd during the year. Mr Lee’s total assessable income for the year of assessment 2020/21 is: Select one: a. $40,000 b. $365,000 c. Nil d. $730,000
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please answer according to Australian Law Richard is a retired solicitor. His wife Tracy is a retired school teacher. Both wish to remain active and theyinvest in a gift shop that is to be managed by their daughter Alice, who is aged 35. They form a partnershipof three called “Alice's Gift Shop”.Richard and Tracy contributed $40,000 each to fund the purchase of the shop. The partnership agreementprovides:• Both Richard and Tracy are to receive interest at the rate of 10% p.a. on their capitalcontribution of $40,000.• Alice will receive a salary of $25,000 for the management of the shop, as well assuperannuation contributions of $6,000.• A car will be leased by the business and provided to Alice.• All profits and losses are to be shared equally between the three partners.The accounts for this income year show the following:Income ($)Sales (excluding GST) 240,000Expenses ($)Cost of goods sold 130,000Interest on capital paid to Richard and Tracy 8,000Salary to Alice 25,000Superannuation…