Australian Tax Implications for Expatriates Living in Other Countries

Running Head: TAXATION LAW
Taxation Law
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Taxation Law1
Introduction
An Australian taxation Law seems to be quite complex in respect to all the countries.
Therefore the business individuals and expatriates should have the will to know and
understand all the allowances as well as downsides for the one who makes an arrangement
for their employment and considerations for financial interest that helps them to return
Australia. It has seen that for the expatriates Australia is well-known amongst all the
countries (Jones, 2018). Income tax is charged on the person who is an Australian resident
and the taxes that charged upon them on the collective earning. For the non-Australian
residents the taxes charged upon them is on the Australian source of an income. It is even
knowing that this liability may reduce on the basis of provision of double taxation accords
arrived in Australia and other nation.
The main purpose of this essay is to have a proper understanding of the Australian
tax implications for those who ate living as emigrants in different nation. The judgment
announced in the case “Harding v Commissioner of Taxation (2018)” and “Harding v
Federal Commissioner of Taxation (2019)” has been discussed in this essay to comprehend
the implications of putting the Ordinary Concepts test as well as permanent place of abode
test.
Australian Tax Implications Living as an Expatriate in Other Nation:
The Australian Taxation structure has two dwelling status that the expatriates must be
aware about. A resident of Australia for the purpose of taxation and overseas residents.
Unrelatedly to the residential status, an individual must be go through the tax return
(Norbury, 2019). It is very important matter in respect to taxation that must not ignore and to
be considered by an individual to finish their obligations before leaving Australia. In view of
that, it is anticipated that an individual is no more treated as an Australian resident once when

Taxation Law2
they left Australia. On the other hand non-residents must concern to the fact that apart from
the tax liability of Australia that is source of gains and income from Australia also can be
trailing tax liability respective to employee benefit plan or it can be deferred bonus plan that
is related partially to the time of Australian employment.
Some groundwork must be made respect to the filing of tax returns in the year of
person leaving Australia (Morgan & Castelyn, 2018). Vital information like date on which an
individual concluded to be a resident, details of an employment, receiving investment till the
time of departure and details about income from Australian sources earned after the departure
time.
“Harding v Commissioner of Taxation (2018)”- a case in which the decision has
made that would definitely benefited so many Australians that have decided to locate
themselves for a long span of time (Murray & Sarah 2018). The Federal Court led that those
Australians who is working in foreign can conclude their Australian resident for tax benefit
when they have taken house temporarily in the foreign location. The question that is related
to the position of residency for the purpose of tax was portrayed by the Federal court in the
given case of “Harding v Commissioner of Taxation (2018)” which has focused on the
several issues that is a concern for the Australian residents who is working in foreign for a
long span of time (Pwc.com, 2019). The taxpayer has stayed in a foreign country for ten
years and after that he was living in Australia for eight years and finally he has decided to
move in other country on a permanent basis with having an intention of not coming back to
Australia.
Mr. Harding’s family had a plan to live together outside Australia when the middle
child finish his high school studies which was about a span of two years. After that also Mr.
Harding has a residence in Australia for their family to stay together (Pwc.com, 2019). He