Advise Advisers and Aussiebank of the Australian tax consequences of the above facts. Critically analyse the control rule in the Australian CFC rules. Ltd., a resident of Singapore, sells medical equipment and provides technical assistance in the use of the equipment. It also holds a small portfolio of investments. The shareholding in Medical is as follows Instruments Pty.
All shareholders are Australian residents.
The companies are business associates, but there is no common shareholding. Dr. Schwarz does not hold any shares in the Australian companies, but is an employee of Instruments. Medical manufactures and assembles medical equipment in Singapore. The raw materials for products manufactured by Medical are acquired from unrelated suppliers in Singapore. The components for products assembled by Medical are acquired from Instruments, Scalpel and Precision.