IF AV JSC CO WANTS TO EFFECT THE CHANGE WITHIN THE YEAR 2012. (4...

2013, if AV JSC Co wants to effect the change within the year 2012. (4 marks)(30 marks)2 Mr Nam Tran, 60 years old and divorced, is an overseas Vietnamese holding citizen status in Australia. He has heldthe position of general director of AXM from 2009. During 2012, Nam retired and terminated his employment withAXM, his last working day at AXM was 15 April 2012.During his entire employment period in Vietnam, AXM rented a house for him at a cost of VND30 million per month.In 2012, Nam also received the following income (gross of tax in Vietnam) from AXM in Vietnam according to hislabour contract:– Salary: USD15,000 per working month (or pro-rata)– Rest and recreation allowance in cash: USD1,000 per month for each full working month– Bonus: USD20,000 (paid on 30 April 2012)– One-off relocation allowance to Australia: USD10,000– Air fares for Nam to go back to Australia on annual leave: VND50,000,000On 1 January 2012, as a reward for Nam’s contribution, AXM granted him 10,000 AXM shares free of charge. Atthe time of this grant, the market price of AXM shares was VND50,000 per share; however, in its accounting recordsAXM only recognised employment costs equal to the nominal value of the shares, which was VND10,000 per share.On 30 May 2012, Nam sold all of these AXM shares for VND52,000 per share in the Vietnamese stock market. Namdid not register for the 20% method for tax on capital transfers at the beginning of the year.Nam is reputed for his management skills in the business community in Vietnam, so following his retirement VSC, afamous training company, signed an independent service agreement with him for a training tour on management skillsin the large cities of Vietnam. Nam also received an amount of VND180 million (after personal income tax (PIT)withheld) from VSC for the training courses he conducted from 16 April 2012 to 31 May 2012.Nam cannot prove that he is a tax resident of any other country in 2012. His actual schedule of time spent in Vietnamand time spent elsewhere for the year 2012 is as follows:From To Notes1 January 2012 20 January 2012 Working in Vietnam21 January 2012 6 February 2012 Lunar New Year leave and annual leave in Singapore7 February 2012 15 April 2012 Working in Vietnam16 April 2012 31 May 2012 Training tour around Vietnam1 June 2012 31 December 2012 Went back to Australia and then travelled around the worldRequired:(a) Explain the taxability of the award of 10,000 shares made to Mr Nam Tran by AXM in January 2012 andstate the taxable income, point of taxation and tax filing responsibilities in respect of the award for personalincome tax (PIT) purposes. (4 marks)(b) For the calendar year 2012:(i) Calculate the number of days Mr Nam Tran spent in Vietnam and determine his tax residency forVietnam PIT purposes; (5 marks)(ii) Assuming that from the beginning of the year 2012, AXM was fully informed of Mr Nam Tran’s leaveschedule and retirement date, explain the responsibilities of the following in respect of the filing of hisPIT return in Vietnam, and state the deadline for submission of such returns:(1) AXM;(2) VSC; and(3) Mr Nam Tran. (6 marks)(iii) Assuming that he is treated as tax resident in Vietnam, calculate Mr Nam Tran’s tax liability for thepurposes of his individual PIT tax finalisation.Note: You should ignore social insurance, health insurance and trade union contributions and any specialtax exemption available for 2012. (10 marks)3 (a) VNED, a Vietnamese company, entered into an agent contract with DUP, a US company, under which VNEDwould act as an agent of DUP for international express delivery services. In the period from January to June