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International Tax News - Private Client focus

Appeal News: Leave sought for High Court Appeal in Addy

10 November 2020

The taxpayer has sought leave to appeal to the High Court from the decision of the Full Federal Court in FC of T v Addy 2020 ATC ¶20-756; [2020] FCAFC 135.

In that case, the Court held that a working holiday maker was required to pay the “backpacker tax” and was not entitled to benefit from the tax-free threshold.

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Australia's Corporate Tax Residency laws to change: Budget Announcement

6 October 2020

The Government has announced that the Income Tax Assessment Act 1936 will be amended to change Australia's Corporate Tax Residency laws. The change which has been announced today, as part of the Federal Budget 2020-2021 aims to ensure that a foreign company is not considered tax resident of Australia merely because its central management and control is exercised from Australia.

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Case News: Pike Appeal

22 September 2020

The Commissioner has lost his appeal to the Full Federal Court in Commissioner of Taxation v Pike [2020] FCAFC158. The main issue was the application of the Australia-Thailand Double Tax Agreement and in particular how the 'tie-breaker test' of residency applied to Mr Pike's situation.

The Full Federal Court has re-affirmed the earlier decision of the single bench that Mr Pike's personal and economic relations were closer to Thailand than to Australia.

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Case News: Greensill Appeal

21 August 2020

The decision in Peter Greensill Family Co Pty Ltd (trustee) v Commissioner of Taxation (No 2) has been appealed to the Full Federal Court, in an attempt to overturn Justice Logan's decision in first instance that a non-resident beneficiary was taxable on the capital gains made by the trustee of an Australian discretionary trust - on assets which were not Taxable Australian Property.

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Case News - Commissioners wins Addy Non-Discrimination Case

6 August 2020

A UK citizen in Australia on a working holiday visa has been found not to have been a resident under ordinary concepts, although she was resident under the 183 day test due to a technicality. However, she was not discriminated against by Australia's backpacker Tax. The purpose of the backpacker tax is to levy a flat 15% tax on the income of backpacker (working holiday maker) in Australia.

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ATO updates guidance for returning Australians

3 August 2020

The ATO has updated its guidance on tax residency and source of income issues for returning Australians. It has also referred taxpayers to its two main tax rulings on residency. Guidance is also provided for people who are continuing to work in Australia as to whether that income would have an Australian source.

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Greensill Case: Non-resident assessable on capital gains made by Australian family trust

28 April 2020

In Peter Greensill Family Co Pty Ltd (trustee) v Commissioner of Taxation [2020] FCA 559, the Federal Court has found for the Commissioner. It rejected an appeal from the taxpayer that capital gains made by an Australian family trust should not be exempt from tax because they were distributed to a non-resident of Australia, who was based in London.

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ATO publishes guidance for Australian Expats on COVID19

26 March 2020

The ATO has published guidance on tax residency issues for Australian expatriates returning to Australia because of the COVID19 crisis. The question is whether an expat who is forced back to Australia because of the COVID19 pandemic would be treated as resident.

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BHP loses High Court CFC case

11 March 2020

Today the High Court of Australia unanimously found in favour of the ATO and dismissed BHP's appeal in relation to how Australia's tax laws applied to sales made by BHP's Swiss marketing arm from purchases of commodities from group companies in Australia.

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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.

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ATO encourages taxpayers to review past FITO claims

17 February 2020

Following the High Courts refusal to hear an appeal in Burton, ATO Deputy Commissioner encourages clients to review past tax returns

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Burton special leave application refused

14 February 2020

The taxpayer's application for special leave to appeal the decision in Burton v Commissioner of Taxation [2019] FCAFC 141 has been disallowed by the High Court. This means that the majority decision of the Full Federal Court in that case stands. That decision means that the US-Australia Double Tax Agreement does not assist Australian taxpayers who derive long term capital gains in the USA because the amount of the offset to be claimed will be determined by operation of Section 770-10 of the Income Tax Assessment Act 1997.

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Burton seeks leave for High Court Appeal

1 February 2020

The taxpayers in Burton v FC of T 2019 ATC ¶20-709, [2019] FCAFC 14 have applied to the High Court for special leave to appeal from the decision of the Full Federal Court.

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