Question

c. Bjorn migrated from Finland to Australia with his family. Shortly after arriving he had to return to Finland to finish a work contract that had two years remaining. Bjorn departed three weeks after arriving and settling his family in Sydney. In Finland he lived in the family house that the family lived in prior to leaving for Australia. He also used the family car for work in Finland. Although Bjorn intends to join the family in Australia for good at the end of the contract he is keeping his options open in case he can get another work contract. In the twelve months Bjorn has been back in Finland he has visited the family once in Australia for a period of one week. Is Bjorn a resident of Australia for tax purposes? Why/Why not?

Answer 1

The residency status of the individual can be tested on three basis below:-

1)183 days test:- As the Bjorn did not stay in australia more than 183 days he is not resident of australia

2) Common law test:- Residency with the family;-Bjorn has migrated australia with the family for permanent living. therefor it is material fact for his resident citizenship of australia.

3)Extended definition of residence:-Bjorn is nor ordinary resident of the australia even under the extended definition of residence. Though he wants to return to australia with his family for living purpose but he is vague about it and if possible wants to continue his work. Further he lives in his permanent house as usually before migrating to australia. Moreover he has not come under any formal relationship with the australian government like opening an account in australia or making investment there.

so by giving weightage of the above facts, he is not resident of australia.