We previously reported on relation to the Full Federal Court decision in the residency case of Harding v COT  FCAFC 29 (Harding) which found in favour of Mr Harding, reversing the Federal Court’s decision at first instance.
The Commissioner of Taxation has sought special leave to appeal the decision in Harding to the High Court.
While we consider the Harding decision was a common sense outcome, the individual residency rules are complex and the case illustrates the difficulties in applying rules created in the 1930s to the 21st century.
The Board of Taxation has recommended replacing the current residency test. Any comments by the High Court on the difficulty and complexity of the test, irrespective of the outcome of the special leave application or substantive hearing, may add further weight to the reform impetus.
To discuss this article, the decision in Harding, or for any further information regarding the question of Australian tax residency, please contact:
Principal Lawyer | Accredited Specialist in Tax Law
M +61 407 821 157 | T +61 3 9611 0176
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia