Decision impact statement

Groves and Commissioner of Taxation

Venue: Administrative Appeals Tribunal
Venue Reference No: 2011/1248
Judge Name: Deputy President Handley
Judgment date: 1 September 2011
Appeals on foot: No.
Decision Outcome: Partially adverse

Impacted Advice

Relevant Rulings/Determinations:

• N/A

Subject References:
income tax
objection to assessment
resident for taxation purposes
eligibility for tax-free threshold
resident for taxation purposes for whole or part year

Précis

Outlines the ATO response to this case which concerned the residency status of a taxpayer.

Brief summary of facts

The taxpayer arrived in Australia on a working holiday visa on 2 July 2009, spent about one and a half months travelling and then rented accommodation in Coogee from September 2009 to 27 May 2010 when he departed Australia, returning to the UK. While he was in Sydney, the taxpayer had earnings from work as a bar attendant in a Sydney hotel.

The Commissioner accepted, prior to the matter being heard that the taxpayer was a resident of Australia for tax purposes. However, the taxpayer submitted that he was a resident for the entire income year and thus should be entitled to a full year tax-free threshold (even though the taxpayer was only present in Australia for eleven months and not the full income year).

Issues decided by the court

The Tribunal affirmed the Commissioner's view that the taxpayer should be treated as having a part-year residency period of eleven months in accordance with section 18 of the Income Tax Rates Act 1986.

ATO view of Decision

The decision was based on the facts of the case.

Administrative Treatment

Implications for ATO precedential documents (Public Rulings & Determinations etc)

N/A

Implications for Law Administration Practice Statements

N/A

Court citation:
[2011] AATA 609
(2011) 85 ATR 323

Legislative References:
Income Tax Assessment Act 1997
995-1

Income Tax Assessment Act 1936
6

Taxation Administration Act 1953
14ZZK

Income Tax Rates Act 1986
3
18
20

Case References:
Commissioner of Taxation v Executors of the Estate of Santha Thevy Subrahmanyam
(2001) 116 FCR 180
(2001) 189 ALR 666
2002 ATC 4001
(2001) 49 ATR 29
[2001] FCA 1836

Case 20
(1965) 12 CTBR

Case 78
(1968) 11 CTBR 461