Question
URGENTT PLEASE HELP ASAP a) Wales Co is a resident company which in 2021 derived $6.5m of Australian source income and $1.5m of foreign source
URGENTT PLEASE HELP ASAP
a) Wales Co is a resident company which in 2021 derived $6.5m of Australian source income and $1.5m of foreign source income. The foreign source income was subject to foreign income tax at the rate of 35%. Calculate Wales Cos Australian tax liability, taking into the account of foreign income tax offset.
b) RR Co is a resident company that pays a dividend of $75,500 (which is franked to the extent of $7,500) to Alison who is a resident of Japan. Explain how the withholding tax rules apply to the payment of the dividend.
c) A company earns income of $85,000 in its country of residence (Country A) and income of $25,000 in a foreign country (Country G). Country A subjects resident companies to tax on their worldwide income at the rate of 30%. Country G subjects foreign resident companies to tax on income earned in Country G at the rate 20%. Requirement: Outline the way in which the different methods would work to limit double taxation.
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