The AAT has held a taxpayer was a resident of Australia within the meaning of s 6(1) of the ITAA 1936 for the 2006 to 2008 income years. Accordingly, it affirmed the Commissioner’s decision to assess the taxpayer on various foreign income earned in the relevant periods.
The taxpayer migrated to Australia in 2005 with his family on a business migration permanent resident visa. He is a pilot who works overseas and is away from Australia for extended periods of time. The Commissioner contended that the taxpayer was a resident of Australia for the 2006 to 2008 income years and assessed him on the foreign income earned. In addition, the ATO also imposed a shortfall penalty for recklessness. The taxpayer contended that he was a foreign resident for the relevant years and should not be taxed on the income.
The Tribunal held that “the taxpayer was clearly an Australian resident for tax purposes in the year of income” under s 6(1). It said based on the evidence presented, the taxpayer had built a life in Australia for himself and his family over the relevant income years. In relation to penalties, the AAT affirmed the Commissioner’s decision to impose a shortfall penalty for recklessness as it said “there is no basis for believing the taxpayer was a foreign resident”. Further, it held there were no circumstances to justify remission of the penalty.
(AAT Case [2012] AATA 799, Re Bezuidenhout and FCT, AAT, Ref Nos 2011/5525-28, McCabe SM, 15 November 2012.)
[LTN 224, 19/11]