Toto Bobo is an Australian company.
Toto Bobo has 4 directors
• Two are located in Singapore
• One is located in Monaco, and
• Edi who is Australian
Edi has sold the following items
Shares in XYZ Ltd were sold on 1/10/2017 for $45000. These shares were purchased for long term investment purposes on 31/10/1998 for $41500.
Edi has interests in many businesses. One particular business is a clothing store. This store imports a lot of clothing from overseas and is entitled to a concessional rate on the customs duty for a quota (a particular quantity) of protective clothing. However, this protective clothing was not selling well so Edi sold the quota to another business for $50 000. The value of the quota at purchase 5 years ago was $25 000. Edi also has to pay an annual fee of $5000 to renew the quota.
Advise Edi as to the tax implications of each of these disposals and calculate any amounts required to be declared in his tax return.