Question

1)Tax holiday pty ltd is a company incorporated in Hong Kong. Tax Holiday pty ltds business involves providing guided tours of the financial district of Hong Kong to international business travellers in hong kong. Tax holiday pty ltd has no trading activities or sales in Australia. Plan Ning, as Australian tax resident, owns all the shares in Tax Holiday Pty Ltd. The directors of Tax holiday pty ltd regularlymeet in brisbane australia, where the power management is exercised.

In relation to the above facts which of the following statements istrue?

a) As tax holiday pty ltd is not incorporated in Australia, it is not possible for it to be a resident for Australian tax purposes.

b)As tax holiday pty ltd is not conducting business in Australia,it willnot be regarded as a resident pursuant to the management test.

c)Tax holiday pty ltd ordinarily resides in Australia and is therefore a resident for Australian taxation purposes.

d) As management and control is exercised in Australia, Tax holiday pty ltd is a resident for Australian tax purposes.

e)As tax holiday pty ltd's controlling shareholder is an Australian tax resident, Tax holiday pty ltd will be regarded as an Australian

tax resident.