The Big Bang Company was set up by Ed, an Australian resident. It is incorporated in Singapore and...

Question

The Big Bang Company was set up by Ed, an Australian resident. It is incorporated in Singapore and has two directors who are resident in Singapore and who hold board meetings in Singapore. Each director has two shares in the Big Bang Company, which they hold on trust for Ed. The Big Bang Company owns real property, all of which is outside Australia, and makes its pro?ts from commercial property leases on a large scale. Ed does not attend the board meetings in Singapore; however, the constitution of the Big Bang Company provides that the decisions of the directors are only effective if Ed concurs with them. The directors carry on all operational activities, such as collecting rent, paying commission, ?nding tenants, making minor repairs and maintaining the buildings

Robert · Accepted Answer

1
Issue  
The key issue is to determine whether the Big Bang Company is considered as a resident of 
Australia for tax purpose.  
Rule  
A company must satisfy the specific conditions of the three tests in regards to recognise a tax 
resident of Australia. These three tests are as outlined below: 
1. The place of incorporation Test: This test checks the incorporation place of the 
company. The company must be united within the Australian land as per The 
Corporations Act 2001. 
2.  The place of central management and control: This test comprises two main 
conditions that must be fulfilled in order to satisfy this test.

The Big Bang Company was set up by Ed, an Australian resident. It is incorporated in Singapore and has two directors who are resident in Singapore and who hold board meetings in Singapore. Each...

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