TAXATION LAW3
The definition given under the “sec 6 (1), ITAA 1936,” includes of four different test and the
last test is completely an objective test3. The test are as follows;
Resides Test:
Under this test, whether the taxpayer is residing in Australia is viewed as the prime
test for deciding the residential position and it is held as common law test. A person is held as
Australian occupant for tax purpose if the taxpayer is eventually living in Australia,
regardless of their nationality, citizen or the site of their fixed home4. Accordingly, an
individual whether a person is or not the resident of Australia is dependent on the specific
factors. This includes;
a. Physically present in Australia
b. Time of physical presence
c. Term of any contract relating to employment
d. Frequency and regularity of the taxpayer’s movement
The factors that is given above should be ascertained and controlling indicators must
be weighed up to ascertain whether an individual is existent in Australia and therefore an
Australian resident for the purpose of tax. In the recent example of “FCT v Iyengar (2011)”
[AATA 856], the taxpayer was the engineer and was appointed for overseas employment for
more than two years5. The taxpayer kept his family home in Australia and ties in Australia
3 Pert, Alison, et al. “'Federal Commissioner of Taxation v Jayasinghe' (2016) 247 FCR 40.” Australian Year Book of
International Law, vol. 35, 2017, pp. 260–262.
4 Sharkey, Nolan. "Departing Australia: a complex tax situation with possible benefits and hidden traps." Tax Specialist 19.5
(2016): 180.
5 Lam, Dung, and Whitney, Alex. “Taxation and Property: Practical Aspects of the New Foreign Resident CGT Witholding
Tax.” LSJ: Law Society of NSW Journal, vol. 3, no. 3, 2016, pp. 84–85.

Letter of Advice: Private and Confidential 2022

Contribute Materials

Related Documents

Private and Confidential Pitchers

Australian Taxation Law Case

Taxation Law - Australia Study

Taxation Law Issue Australia Question Answer 2022

Taxation Law

Taxation Law

+13062052269

info@desklib.com