Taxation Law Case Analysis

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Part 1:..........................................................................................................................2
A summary of key legal issues:...............................................................................2
Summary of relevant law:........................................................................................2
The permanent place of abode test:........................................................................2
Application of law to the given facts in case:...........................................................3
Permanent place of abode test:...............................................................................3
Opinion on case’s practical impacts:.......................................................................4
References:.................................................................................................................5

2TAXATION LAW
Part 1:
A summary of key legal issues:
The key legal issue to the case was that whether Mr Harding was treated as
the resident for the year 2011. The law court in “Harding v Commissioner of
Taxation (2018)”, stated that an Australian resident that are residing out of Australia
for some years and has set up the home overseas would continue to be the resident
of Australia based on the reasoning that the taxpayers fully furnished home
maintained in a foreign country is not adequately permanent1.
Summary of relevant law:
The resides test:
The common law test or the resides test states forms the primary test in
determining whether the person is residing in Australia. An individual would be
treated as the Australian citizen if they are living in Australia irrespective of their
origin or nationality or location of the taxpayer’s permanent home. In “Applegate v
FCT (1979)” Justice Northrop adopted the meaning of dictionary to explain that to
dwell on permanent basis or for the considerable time period at the one’s settled
abode. The court held that permanent does not means forever and objectively is
assessed each year. Factors such as physical existence and regularity or the
purpose of arriving in Australia.
The permanent place of abode test:
A person’s home comprises of the lawful relation with the country based on
which the person is capable of invoking the nations laws as their own. Referring to
“section 6 (1)”, an individual would be held as the citizen of Australia provided they
have the Australian domicile and they can prove that they have not established a
permanent place of residence out of Australia2. The court in “Applegate v FCT
(1979)” considered the “permanent place of abode”. The full federal court noticed
that even though “Applegate” had retained his domicile of Australia he has
1 "Ustlii.Edu.Au", Ustlii.Edu.Au (Webpage, 2019)
<http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCAFC//2019/29.html>
2 Sadiq, Kerrie. Australian Tax Law Cases 2018. Thomson Reuters, 2018.