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ARTICLE · 01 AUGUST 2013

ATO continues to focus on returning expatriates

Cooper Grace Ward
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This recent case is an example of ATO arguments to assert that an individual 'resides' in Australia for tax purposes.

AustraliaTax
Greg Cahill
Greg Cahill
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The ATO is currently targeting expatriates returning to Australia, sometimes after an extended time living and working overseas.

We have seen a number of instances in the last month where the ATO has suggested an expatriate was an Australian tax resident, and that the expatriate's income earned from overseas employment should be reported as taxable in their Australian income tax returns.

The recent case of Pillay v Commissioner of Taxation [2013] AATA 447 is an example of the arguments that the ATO are pursuing to assert that an individual 'resides' in Australia for tax purposes. Dr Pillay was held to be a resident of Australia in the 2010, 2011 and 2012 income years, despite living and working in East Timor since 2006. The AAT accepted the ATO's submission that Dr Pillay had had a 'continuity of association' with Australia and was therefore a resident for tax purposes. Dr Pillay maintained a house and had bank accounts in Australia.

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