LAW3130: Global Investments (UK) Ltd (GIUK) - Law Assignment

Internal Code: MAS6430

Law Assignment:

Global Investments (UK) Ltd (GIUK) is a company incorporated in the United Kingdom (UK). The company is a holding company for a number of other entities that provide services in various countries across the globe. GIUK owns 80% of the shares in Global Investment Australia Ltd (GIA) which is incorporated in Australia and carries on a business providing website design services in Australia. GIUK’s main activities are raising finance, investing and developing the overall business strategy, so as to effectively manage the other companies in the group. GIUK also provides centralized management, marketing, and other head office services to the other companies in the group for an arm’s length fee. The main income derived by GIUK is interest from the loans to the group companies and service fee income. GIUK’s main head office is located in London and though most of their administrative staff are also located in the London office, senior executive staff and Board members (directors) are located at various other subsidiary company offices around the world. Two Board members (from a total of ten Board members) and two senior executives of GIUK are based in GIA’s office in Australia. They regularly travel overseas. At least two Board (directors) meetings were held in Australia during the 2017 income year with the remaining held in London. There were eleven Board meetings held during the year. Questions: Discuss with reference to legislation, case law and/or rulings (where relevant) whether GIUK Ltd and GIA Ltd would be considered residents of Australia for tax purposes for the income year ended 30 June 2017?