The big bang company was set up by ed an australian

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 profits 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, finding tenants, making minor repairs and main taining the buildings. Required: Is there any possible scenario in which the Big Bang Company could be considered a resident of Australia for tax purposes?

Refer to Ruling TR 2004/15, justify your answer considering all the possibilities applicable in this scenario to become a resident of Australia. A detail analysis of each possibility is required.

Answer 1

The Big Bang organization was set up by Ed, an Australian resident. This is incorporated in Singapore and consists of two directors who are resident in Singapore and who hold board meetings in the Singapore. Each director consists of two shares in the Big Bang Company that they hold on trust for Ed. The Big Bang organization owns real property, all of which is outside Australia, and makes its gain from commercial property leases on the big scale. Ed doesn’t attend the board meetings in Singapore; though, the constitution of the Big Bang organization gives that the decisions of the directors are just efficient if Ed agrees with them. The directors keep on all operational activities, like collecting rent, finding tenants, paying commission, making minor repairs and main training the buildings. Requisite: Is there any probable scenario in which the Big Bang organization could be considered a resident of Australia for tax aims?