law

QUESTION 6 14 points Save Answe On 10 July 2020, Tim Morris was transferred to the New York office of his company, Global Australia Lid, for five years. His wife Kate accompanied him to New York. In New York they lived in a house owned by the company and leased their Sydney residence. While residing in New York, Kate borrowed $100,000 from the National Australia Bank on 1 December 2020, to fund the purchase of 50,000 shares in Global Australia (Australian company). During the 2020/21 tax year, Kate received $10,000 as her share of rental income from the lease of their Australian home, and $2,500 in fully franked distributions from Global Australia. She incurred no expenses in deriving the rental income, but her interest payments on the National Australia Bank loan amounted to $5,500. Required a. Discuss Kate's residency status (5 Marks) b. What are the Australian tax consequences of these transactions for Kate Morris? (3 Marks) c. Calculate Kate's assessable income. You must refer to the relevant section numbers or cases in the legislation in each part of your answer. (6 Marks) *Please indicate which question you are answering for each one For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph Arial 10pt V V A v . .. x2 X, * IT TTe L.+. ABC V Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window