The AAT has found that a taxpayer was an Australian resident for the income years ended 30 June 2007 and 30 June 2008. In doing so, it also affirmed the notices of assessment issued by the Commissioner to the taxpayer for the relevant years.
The taxpayer was a mechanical engineer who worked in various countries as a contractor accompanied by his wife in the 2007 and 2008 income years. During the relevant period, he had sold his Australian property and his motor vehicle. However, the taxpayer maintained his Australian bank account. He contended that in May 2006, he formed an intention to live in the UK but was ultimately unable to do so due to the failing health of his wife’s mother. The taxpayer eventually returned to Australia in 2009 where he has since lived and worked, and purchased a property in 2012. The Commissioner issued notices of assessment identifying the taxpayer’s income as id=”mce_marker”16,744 and id=”mce_marker”61,282, for the 2007 and 2008 years, respectively. Broadly, the taxpayer argued that he was not an Australian resident as he formed an intention to live in the UK during the relevant period.
The AAT said based on the evidence the taxpayer had a strong and continuing residency connection with an intention to return to Australia. It said that even though the taxpayer argued that he formed an intention to live in the UK in May 2006, he did not live in the UK during the 2007 year, and after travelling to UK in 2008, he did not seek to rent or lease premises on his own behalf. In conclusion, it held the taxpayer had not discharge the onus of proving that he was not an Australian resident under s 6(1) of the ITAA 1936 and affirmed the Commissioner’s assessment and amended assessment for the relevant years.
(AAT Case [2013] AATA 604, Re ZKBN and FCT, AAT, Ref Nos 2013/0574-75, Kenny SM, 27 August 2013.)
[LTN 167, 29/8/13]