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Hi there, I'm having problem with this case, can anyone help me with it please?
Hi there, I'm having problem with this case, can anyone help me with it please?
Joshua Taylor lives in Melbourne. He is a consultant with Recruit Plus, an international recruitment agency specialising in the sourcing and placement of executive level staff in professional services organisations. He earns a salary of $11,000 per month, of which $10,000 is paid into his bank account, and the remaining $1,000 is paid into his sister's bank account. He also has reportable fringe benefits of $500 per month.
In January 2018, Recruit Plus transferred Joshua to its Singapore office for one month to be part of the Recruit Plus bid team on a tender. Recruit Plus was tendering to be the preferred worldwide recruitment agency for Stein Advertising. Joshua's stay in Singapore was extended by a further two months due to delays with the tender. To assist Joshua in the further two month period, Recruit Plus paid $6,000 (AUD) of his salary from Australia into a Singaporean bank account that Joshua opened.
Stein Advertising was very impressed with Joshua's capabilities and offered him employment as Director of Recruitment, based in Singapore. To incentivise Joshua to leave Recruit Plus, Stein Advertising offered a joining bonus of $60,000 (AUD) to be paid on acceptance of the contract of employment, and an annual salary of $200,000 (SGD). Joshua accepted the contract during April 2018 and commenced employment at Stein Advertising on 1 June 2018, but however worked from the Sydney office of Stein Advertising from 16 June 2018 to 30 June 2018.
Recruit Plus was disappointed with Joshua's decision to resign and was concerned that he would return to Australia in the near future and join a competitor. Human Resources at Recruit Plus sent Joshua a letter confirming receipt of his resignation, and to remind him of the terms of his employment contract which prohibit him from working for another recruitment agency for a period of 12-months following departure from Recruit Plus. Joshua had to sign and return a copy of the letter to Recruit Plus in order for his final monthly pay of $11,000 (AUD) to be released.
At Joshua's farewell presentation at Recruit Plus, he was presented with a Rolex watch from his managers as a departing gift, which was valued at $5,000. Joshua does not have private health insurance in Australia.
Required: Advise Joshua as to the income tax implications of the above transactions. Your advice must be supported by relevant legislation and case law.
around six hundred words explaination needed