[BITList] Another one

[John Feltham]

Sol Trujillo quitting Telstra post with good tax deal
	
Susannah Moran | February 27, 2009

Article from: The Australian
AS a temporary Australian resident, outgoing Telstra chief executive  
Sol Trujillo's vast fortune was not subject to scrutiny by the  
Australian Taxation Office.

In a bid to encourage international executives to come to Australia  
and promote the country as a business destination, the Coalition  
government amended the Income Tax Assessment Act in 2006 for temporary  
residents.

The changes meant foreign executives such as Mr Trujillo do not have  
to pay tax on any income earnt from offshore investments, or pay  
capital gains tax on investments such as shares. There was going to a  
be a four-year limit on the exemption, but it was scrapped.

Mr Trujillo, who was paid $13.4million last financial year, up from  
$11.8 million in 2007, arrived in Australia a wealthy man -- a payout  
from a former job at US telecommunications company US West netted him  
$US90 million.

As a US citizen, however, Mr Trujillo is liable to pay tax in the US  
on his worldwide income, but would receive a credit for tax paid on  
his Telstra salary.

When Telstra hired Mr Trujillo in 2005, the new exemption laws were  
not yet in force, and the company generously agreed to pay any tax  
differential.

Telstra paid Mr Trujillo an upfront payment of $1 million to take up  
his position, and as part of his contract the company agreed to pay  
for his wife to travel with him, trips home to the US and rental  
assistance in this country.

During his tenure, Mr Trujillo was well-known for his overseas trips.  
Another generous payment made to Mr Trujillo was $621,275 for moving  
and relocation expenses, which was disclosed in the company's 2007  
annual report.

Part of Mr Trujillo's remuneration included options to purchase  
Telstra shares, which may be subject to tax in Australia. He was  
allocated more than 10 million options to purchase Telstra shares in  
2007, and a further 5 million options in 2008.

Mr Trujillo owns 250,000 Telstra shares directly, according to  
statements filed with the Australian Securities Exchange.

As a temporary resident, Mr Trujillo is not entitled to use the  
Medicare system, although Telstra paid for him to have private health  
insurance.



My Comments:

1 Do we have to pay his and his wife's air fares home as well?

2. There is no mention here of the A$34 Million being paid as  
severance pay. For goodness sake, he is quitting.





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