Question

Elijah is a lawyer who works in Singapore. He is single and lives in Singapore with his parents. Until April 2018 his work did not involve travel. At that time, he accepted an offer from Legal Ease, his employer, to travel temporarily to Australia to provide legal advice to large numbers of former residents of Singapore setting up businesses in Melbourne, Adelaide and Hobart. Elijah enters Australia on 25 April 2018. He intends to spend three months travelling between the three cities, staying in various motels. Legal Ease asks him towards the end of the three months to take up a position in Hobart for a further nine months. In early July, he leases a serviced executive apartment for nine months near his workplace in Hobart. The apartment is his home base during his stay in Australia. He freights more clothing and some personal effects to Australia. Elijah’s parents visit him on two occasions. Although based in Hobart, his commitments require some limited travel. On average, Elijah travels at least once a week to meet clients outside Hobart. Required: Advise Elijah whether he is a resident of Australia for tax purposes In your response give reasons and refer to sections of legislation and cases, where relevant. Elijah is definitely a resident of austeralia, taxation ruling TR 98/17 income tax : residence status of individually entering austrlia outlines the circumstances in which an individual is considered as residing in austtralia such as A migrant, studying in Australia, tourist, yhodse on pere-arranged employement contracts. Family and business or emplyement ties, presence of your family may indicate that you reside in Australia. The way you organise your domestic and economic affairs as part of your life is an influentail factor in determining residency status. You may be considred an Australian resident if your day to day activities in Australia are relitvely similar to your face behaviour before entering Australia. In residency cases, your situation is considred by having regard to all fact and circumstances that are relevant. No single factor is likely to be decisive, and many will be interrelated. Subsection 6(1) of the income tax assessment Act 1936 (ITAA 1936). The intension of purpose of the individual’s presence in Australia, the extent of the individual’s family or business and employement ties within Australia, the individuals social and living arrangement.

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