Additional Question for Unit 6 John Obama, an Australian, was employed by Aluminum Corp. Lid, a multinational corporation based in Australia. According to his employment contract, which was enforceable in Australia, Obama's duties were exclusively to oversee and supervise operations of various affiliated companies of Aluminum in the South East Asia region. However, for convenience, most of his work was performed in Hong Kong and Aluminum Corp. Ltd . paid $60,000 to purchase air tickets for Obama and his wife to relocate them to Hong Kong . Obama reported for duty on 1 April 2007 to Can Lid., a wholly owned subsidiary of Aluminum in Hong Kong. He was still under the Aluminum's control at all times. His salary was paid in Australia dollars into his bank account in Australia. It was Aluminum's policy to allocate to Can Lid. 80% of Obama's salary. Can Ltd. provided Obama with a flat in Hong Kong, and $2,500 was deducted from Obama's monthly salary as rent. The rateable value of the flat was at $200,000 Following a reorganisation of the management of Can Lid. on 1 January 2009, Obama was appointed to be director by Can's board The following information in respect of Obama is available : (A ) Places visited : 1 April 2007 to 1 April 2008 to 31 March 2008 31 March 2009 Hong Kong 219 140 Australia (including 15 days leave ) 25 Japan 55 190 Other Asian countries 97 10 (B) The following sums were received : 1 April 2007 to 1 April 2008 to 31 March 2008 31 March 2009 Salary from Aluminum Corp . Ltd : $3,550,000 $3,800,000 Directors' fees From Can Ltd.: $60,000 RV (C) During the year ended 31 March 2009, Obama took a ten-day business trip to Australia and extended his stay for a further fifteen days to visit his parents. Aluminum purchased air tickets at a price of $20,000 for Obama and his wife. His wife shared the hotel room with him through out the trip. Aluminum approved this arrangement and paid the hotel room charges totalling $30,000 for the entire trip of twenty -five days All amounts were given in Hong Kong dollars . $28000 Required: a) Advise Obama on the extent to which he is liable to Hong Kong salaries tax for the years of assessment 2007 /08 and 2008 /09 . Briefly explain . b) Calculate the assessable income of Obama for each of the years of assessment 2007/08 and 2008/09. Show all your workings