Richardson is a tax resident of Australia and he owns 30% of the shares in JK Ltd, a company incorporated in Singapore. JK Ltd carries out operations in Singapore and other countries with 15% of its profits sourced from Australia. If JK pays a $2,000 dividend to Richardson in the 2022/2023 tax year and if 15% of the profits, out of which that dividend was paid, were sourced in Australia, would Richardson have any tax obligations in Australia?

Question 6Answer

a.

Yes, on the whole dividend amount of $2,000

b.

Yes, only on 15% of the dividend amount($2,000)

c.

No, as 85% of the dividend relates to profits from non-Australian sources.

d.

No, as JK Ltd is a non-resident company.