Case Study One
Part A
All Black Pty Ltd (All Black) carries on a retail fashion clothing business in Brisbane, Australia and a similar retail fashion clothing business in Auckland, New Zealand. The annual general meetings and overall strategy meetings of the company are held in Noumea, New Caledonia because the company has a part ownership interest in the Le Median Hotel in Noumea. All Black was incorporated in New Zealand.
Daniel Pty Ltd (Daniel) a resident Australian company owns 49% of the shares in All Black and another 49% of the shares in All Black are owned directly by individual investors who are resident in New Zealand. The remaining 2% of the shares in All Black are owned by Nicholas. Nicholas was born in Australia in 1982 and qualified as a civil engineer from the University of Queensland in 2005 and immediately commenced working with a coal mining company in Central Queensland where he gained substantial experience in open cut coal mining. In March 2012 Nicholas was offered a position with Brazil’s leading coal producer, Copelmi Mineraçao. Copelmi has been extracting coal for more than a century from the State of Rio Grande do Sul and now accounts for more than 80% of the coal for industrial use in Brazil. Copelmi offered Nicholas a two year contract as supervising engineer over a new coal deposit it was developing and Nicholas took up the contract on 1 April 2012. Nicholas is married and his wife and two children (2 and 3 years) live in Brisbane while Nicholas is overseas. Nicholas is provided with accommodation and food by Copelmi at the mining campsite and is provided with four return trips of three weeks each to Australia each year. It is highly likely that Nicholas will extend his contract with Copelmi at the end of the initial two year period.
Required:
1. Nicholas: Provide advice on whether Nicholas is a resident of Australia for the year ended 30 June 2013. Support your discussion and analysis with reference to relevant authority.
2….