Topic: Australia Taxation law – Resident Question
WC Fields Ltd is a jewellery manufacturing and export company that was incorporated in China in 2007. The company conducts its manufacturing operations in China but sells its jewellery throughout South-east Asia, Australia and New Zealand where it maintains large warehouses from which it supplies local retailers. Eight of the company’s directors reside in China while two directors reside in Australia. At the company’s monthly board of directors meetings in Beijing decisions are made that concern the general and corporate affairs of the company internationally. Decisions as to warehouse staffing, work hours and warehouse layout of stock are always made by the local manager of each of the warehouses in South-east Asia, Australia and New Zealand.
In 2012 the company decided to conduct two meetings a year of the board of directors meetings in Melbourne at which a number of decisions concerning company finance, company strategy and upper level staffing, such as the appointment of Chief Executive Officers were made. At the board directors’ meeting in Melbourne in October 2011, the company decided that the company’s IT functions would be outsourced to Bangalore, India. At the board directors’ meeting in Melbourne in June 2012, it was decided that the company would buy a number of its own retail stores in Thailand, Malaysia and New Zealand through which the company would sell its products.
(a) Advise WC Fields Ltd whether it is a resident of Australia under the Income Tax Assessment Act from 2007 to 2011.
(b) Advise WC Fields Ltd whether it is a resident of Australia under the Income Tax Assessment Act from 2011 to 2012.
(c) Advise WC Fields Ltd whether it is assessable in Australia in respect of any of its income producing activities.