ARTICLE · 14 NOVEMBER 2018

Individual tax residency rules ripe for reform

Colin Biggers & Paisley

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Proposed changes could have significant impact upon the tax profile of individuals with overseas connections.

AustraliaTax

Jessica Yazbek

In brief - Proposed changes could have significant impact upon the tax profile of individuals with overseas connections

The Board of Taxation recently completed a review of Australia's individual income tax residency rules. The Board's proposal for new residency rules is aimed at improving certainty, reducing compliance costs and removing a potential barrier to Australia's attractiveness as an investment location.

Tax residency rules are a complex area of law and have led to numerous disputes and rulings about the receipt of individual income and the susceptibility of that income to Australian tax. They have also led to high-profile tax evasion cases and investigations relating to the diversion of income via offshore entities and structures.

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