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Question:

Discuss whether fred is a resident of Australia for taxation purposes.Explanations of the respective outcomes reached  by the courts in the following cases.

Answer:

Case Study 1

Fred has moved to Australia to build a branch of the British corporation specializing in management consultancy where he is employed. The length of his stay in Australia is not definite but would depend on the time it takes to set up the new office. He leases a residence within Melbourne for 12 months for himself and his wife. His sons continue their stay in London for education. He even rents out the family home and earns interest from his investments in France. However, due to health issues, he returns to the UK after spending a period of 11 months in Australia.

An individual is an inhabitant for taxation purposes if they (ato.gov.au(b), 2016);

When an individual don't fulfill the residing test, despite everything they are still be viewed as an Australian occupant in the event that they fulfill one of 3 statutory tests:

International tax for people

Australian occupants are for the most part taxed on their overall pay from every source. Impermanent inhabitants of Australia and overseas occupants are by and large taxed just on their Australian-sourced earnings, for example, cash they are earning while working within Australia (ato.gov.au(c), 2016). To comprehend their taxation circumstance an individual initially need to work out in the event that they are an Australian or overseas occupant for taxation purposes. This might be distinctive to their residency status for different purposes – like, an individual could be an Australian occupant for taxation purposes regardless of the fact that they are not an Australian national or permanent inhabitant. Fred satisfies the conditions of residency test and the “183-day test”, he would be considered as a occupant of “Australia” for taxation purposes

Case study 2

  1. “Californian Copper Syndicate Ltd V Harris (surveyor of Taxes) (1904) 5TC 159”
  2. “Scottish Australian Mining Co Ltd v Fc of T (1905) 81 CLR 188”
  3. “FC of T v Whitfords Beach Pty Ltd (1982) 150 CLR”
  4. “Statham & Anor v FC of T 89 ATC 4070”
  5. “Casimaty v FC of T 97 ATC 5135”
  6. “Moana Sand Pty Ltd v FC of T 88 ATC 4897”
  7. “Crow v FC of T 88 ATC 4620”
  8. “McCurry & Anor v FC of T 98 ATC 4487”
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