Canberra Ltd began operating a brewery in northern Victoria. The company was incorporated in Hong Kong in 2018 with three shareholders/directors, two of whom are located in Victoria and the third located in Hong Kong. Immediately after incorporation, the company employed a consultant to undertake a feasibility study on the local market, spending $15,000 in July 2018. Once the study was completed and they received the report from the consultant, they determined that there were adequate opportunities to set up the brewery in Beechworth.

REQUIRED:

Advise Canberra Ltd of the tax implications of its situation. Your answer should include references to appropriate legislation, case law and tax rulings. Disregard GST.