As reported in our earlier article on Harding v FCT [2018] FCA 837, the Federal Court ruled that the taxpayer who lived and worked in Bahrain was an Australian tax resident. The taxpayer has now lodged an appeal to the Full Federal Court. The decision in this case turned on whether the taxpayer who lived and worked in Bahrain had a subjective intention to make the other country his ‘permanent place of abode’ rather than only a ‘place to live’.

The ongoing ambiguity and complexity for taxpayers seeking to determine individual tax residency has been recognised by the recent request by the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, for further analysis and consideration of the key recommendations from the Board of Taxation’s August 2017 report on a new tax residency model for individuals (see our article here).

As we have said previously, all parties would undoubtedly welcome simplification of residency rules.

If you have any questions regarding the above or tax residency in general, please contact:

Neil Brydges
Special Counsel | Accredited specialist in Tax Law
Sladen Legal
M +61 407 821 157 | T +61 3 9611 0176
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia
E: nbrydges@sladen.com.au