The AAT has found on the balance of the facts that a taxpayer was an Australian resident according to ordinary concepts for the income year ended 30 June 2009. Accordingly, it held that foreign employment income derived by the taxpayer was properly included in his assessable income for Australian tax purposes.
The taxpayer left Australia on 16 April 2008 after being offered work in the oil and gas industry with a Qatari company. He remained in Qatar until his employment with the company ended on 29 July 2010, and returned to Australia on 1 August 2010. The Commissioner issued an amended assessment to the taxpayer for $52,030.55 in respect of the Qatari employment income derived for the 30 June 2009 income year. The taxpayer broadly contended that he was not a resident of Australia for the relevant period as he had the intention of permanently leaving Australia to pursue a career in the oil and gas industry overseas.
The Tribunal considered 8 factors in deciding whether the taxpayer was an Australian resident under ordinary concepts, including physical presence in Australia, family and business ties, and maintenance of a place of abode.
It said the taxpayer had an Australian property which he maintained and intended to live in, retained his bank accounts and an Australian super fund, transferred the monies earned in Qatar to Australia and was only in Qatar for work purposes. Therefore, the AAT held that, on balance, the taxpayer was a resident of Australia under s 6(1) of the ITAA 1936 for the relevant period, and hence the foreign income derived was assessable.
(AAT Case [2012] AATA 516. Re Sneddon and FCT, AAT, Ref No 2011/4678, Walsh SM, 6 August 2012.)
[LTN 152, 8/8]