Green Bank Pty Ltd ('GPL') is a company incorporated in Cyprus, where its two directors are based and where the board of directors' meetings are held. All the shares in GPL are held by Holdings Pty Ltd ('HPL'), a company incorporated in The Bahamas. HPL, in turn, is owned by Fred, an Australian accountant based in Sydney with very good knowledge of the Australian stock market.

The articles of association of GPL state that its main business is investment in companies with strong environmental credentials and policies. The Articles also state that GPL must act in accordance with instructions it receives from HPL.

During the 2022 year of income, GPL made substantial profits ($3 million) from the purchase and sale of shares listed on the Australian Stock Exchange. The profits were then deposited in a Cyprus bank and earned interest of $100,000 for the year ended 30 June 2022.

The decision by the GPL directors about which shares to buy and sell is driven by advice received from Fred via HPL. HPL instructs GPL about which shares investment policy only after it receives advice from Fred about which Australian shares GPL should buy and sell.

In view of the preceding, the Commissioner of Taxation considers GPL is a resident of Australia and intends to assess it on the profits and interest income it generated in 2022.

NOTE:Australia does not have a double taxation agreement with either Cyprus or The Bahamas.

REQUIRED:

1. Assuming GPL is not a resident of Australia and is not a share trader, what amounts (if any) does GPL have to include as assessable income in its tax return for year ended 30 June 2022 (5 marks)

NOTE: Your answers above must be supported by reference to relevant legislations, multiple case laws and tax rulings. Answer using IRAC method