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Income Tax Law - Residency Issue - Australia Zane has advised you that his employer has discussed an opportunity with him where he could work

Income Tax Law - Residency Issue - Australia

Zane has advised you that his employer has discussed an opportunity with him where he could work in its Singapore office for two years, commencing on 1 July 2019. Although Zane is interested in this opportunity to live and work overseas, he is concerned about the Australian Taxation Office (ATO) forming the view that he would retain his Australian residency during this time. In addition, Zane is a cricket enthusiast and his employer has agreed to him taking annual leave from 1 October and 30 November 2020 to return to Australia and attend the World T20 cricket tournament (held from 18 October to 15 November). Zane anticipates that he will spend the time before and after this event visiting relatives and travelling within Australia. Zane is confident that you will be able to provide him with some clear advice on this issue. He has indicated that he would only be interested in working in Singapore if the ATO considered him to be a non-resident during the two years he would be absent from Australia. You are required to write a letter to Zane outlining the law on this residency issue and how the law would apply to him under the scenario in contemplation (the potential move from Australia to Singapore for work for the period 1/7/2019 to 30/6/2021). Your letter to Zane should refer to relevant sources of law (and any relevant ATO advice). Your letter should also refer to the implications of being a resident or a non-resident during the two years. Zane has some doubts about the implications of the visit to Australia in October and November 2020 in terms of residency. He has asked you for advice on this specific issue and stated that he may consider staying in Singapore if the trip to Australia is likely to increase the chances of him being an Australian resident. As well as providing advice, your letter should set out any additional questions for Zane that are relevant to the residency issue. Finally, your letter should refer to the steps you will take to ensure certainty for Zane as to the ATO view on the residency issue.

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