Modernising Individual Tax Residency—Consultation Paper
The Taxation Committee of the Business Law Section of the Law Council of Australia provided a submission to Treasury in response to the Consultation Paper entitled Modernising Individual Tax Residency (Consultation Paper).
The Committee would like to emphasise the importance and value of this policy initiative. A taxpayer’s residence is one of the two central pillars upon which Australia’s taxation jurisdictional claim rests, and it is therefore crucial that the definition of residence in domestic legislation is fit for purpose.
The Committee strongly believes that a world-leading framework can be developed that provides appropriate outcomes for individuals in all circumstances and satisfies the requirements for certainty, simplicity and integrity—something that the current framework, which dates back to circa 1930, clearly no longer achieves.
Annexures 2 and 3 to this submission are two previous submissions made by the Committee:
- a submission of 9 November 2018 to the Board of Taxation in response to the September 2018 consultation paper entitled Review of the Income Tax Residency Rules for Individuals (the 2018 BLS Submission); and
- a letter of 5 July 2021 to the former Assistant Treasurer regarding the reform of the individual residency rules and the Government’s announcement in the 2021–22 Federal Budget that it will replace the existing individual tax residency rules with a new, modernised framework (the 2021 BLS Submission).
This submission focuses on four key issues raised by the Consultation Paper about the principles that should underpin an enduring framework for individual tax residency:
- adhesiveness;
- the 45-day limit;
- the overseas employment rule; and
- treaty issues.
The Committee’s views on each of these central issues necessarily encompass most of the questions raised in the Consultation Paper but do not answer each question directly.
You can read the full submission below.
Last Updated on 16/10/2023
Share
Tags
Most recent items in Business Law Section
Business Law Section
Reforms to the bankruptcy system
Business Law Section
The Australian Taxation Office's management of small business collectable debt
Trending Items in Business Law Section
Business Law Section
Forsyth/Pose Scholarship
Business Law Section
Santow Scholarship
Business Law Section