Case News - Commissioner Appeals Federal Court Australia-Thailand DTA case (Pike)

20 February 2020

The Commissioner has appealed the decision of the Federal Court in Pike v Commissioner of Taxation [2019] FCA 2185. In this case the taxpayer was found by virtue of the Australia-Thailand DTA to be solely a resident of Thailand under the tie-breaker test.

The Commissioner has appealed the decision of the Federal Court in Pike v Commissioner of Taxation [2019] FCA 2185. In this case the taxpayer was found by virtue of the Australia - Thailand DTA to be solely a resident of Thailand under the tie-breaker test.

The case involved a citizen of Zimbabwe, Mr Pike who had moved to Australia from Zimbabwe and who unable to find work in Australia established a home in Thailand where he found permanent employment. Because of the closeness of his relationship and his presence and enduring ties to Australia it was found that he was a resident of Australia. However it was accepted that he was also resident of Thailand for income tax purposes.

This led to the question how the tie-breaker test in the Australia-Thailand DTA should be applied, since for the purposes of the DTA, Mr Pike could not be a resident of both countries.

The Court (Logan J presiding) found that Mr Pike was solely a resident of Thailand because his permanent and economic relations where closer to Thailand, over the relevant years, than they were to Australia, despite the continuing presence of Mr Pike's wife and children in Australia.

http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA/2019/2185.html