You are a professional tax adviser and you met with a new client Isabelle Lies on the 1 June 2020 Isabelle Lies is employed as a midwife for Queensland Health in the Metro South district in Brisbane. Isabelle is an Australian resident for tax purposes. Isabelle has been working for Queensland Health since she graduated from university. Isabelle is married to Jake and they live at 62 Ormonde Road, Yeronga Q. 4104. Jake purchased the Yeronga house 12 years ago. At the time he was not in a relationship with Isabelle. Isabelle moved into the Yeronga house with Jake on 1 July 2017. Isabelle and Jake also have a two-year-old daughter named Kahlia. Isabelle has advised you that she has been offered a job in England as part of a project between the Australian and British Governments to implement support programs for young pregnant women in abusive relationships. Isabelle would help implement the program in London and learn the strategies for dealing with this group before returning to Australia to initiate it in Brisbane, Sydney and Melbourne. The job would require Isabelle to work in London for a period of three years, commencing on 1 July 2020. Although Isabelle is interested in this opportunity to help improve the daily lives of this group of women, she is concerned about the Australian Taxation Office (ATO) forming the view that she would retain her Australian residency during this time. If Isabelle accepts the job, Jake plans to seek employment with one of the A League Football Clubs as their Club physiotherapist. Jake's best friend from high school is part of Liverpool football club's management team and is aware that they are seeking a new head physiotherapist to take over from a past employee that moved to America. Isabelle plans to find a carer for Kahlia on the days that both her and Jake work.

Isabelle , Jake and kahlia plan to return to Australia for Jake's sisters' wedding in September 2021. They will spend four weeks in Australia to attend the wedding and to spend time with family and friends. Isabelle is confident that you will be able to provide her with some clear advice on this issue. She has indicated that she would only be interested in working in England if the ATO considered her to be a non-resident during the three years she would be absent from Australia.

You are required to write a letter to Isabelle outlining the law on this residency issue and how the law would apply to her under the scenario in contemplation (the potential move from Australia to England for work for the period 1/7/2020 to 30/6/2023). Your letter to Isabelle 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 three years. Isabelle has some doubts about the implications of the visit to Australia in September 2021 in terms of residency. She has asked you for advice on this specific issue and stated that she may consider staying in England if the trip to Australia is likely to increase the chances of her being an Australian resident. As well as providing advice, your letter should set out any additional questions for Isabelle that are relevant to the residency issue. Finally, your letter should refer to the steps you will take to ensure certainty for Isabelle as to the ATO view on the residency issue.

letter format

[Insert your firms address]

Insert a subject heading which the client will easily identify with.

[Include contact person in firm]

[Insert Date]

[Insert clients address]

Dear [Insert particular contact persons name if known]

[INSERT SUBJECT HEADING]

We refer to our meeting on [insert date] and your request for advice in respect of the purchase/sale of . In particular, you requested advice concerning:

• [Insert advice requested details];

Concisely outlines the clients instructions and your perception of what the client really needs

[Insert advice requested details]; and

• [Insert advice requested details].

Below is detailed our understanding of your relevant circumstances, as well as our detailed advice in regards to ....[insert topic].

Our understanding

Pursuant to the information supplied by you, we understand that:

• [Insert relevant circumstances of client that affect your advice];
• [Insert relevant circumstances of client that affect your advice]; and
• [Insert relevant circumstances of client that affect your advice].

If our understanding is incorrect or there are any material omissions, please advise us immediately, as it may affect the conclusions reached in our advice.

Executive Summary

After considering your circumstances we recommend.

				Concisely outlines your overall conclusions and recommendations for the client. If the client stopped reading the letter here they should have a good understanding of what your basic advice is. Should have a hint of your overall recommendation Limit your use of bullet points (both in this part as well as the body of the letter_
		Include here additional questions you need the client to answer to provide more certainty to your advice.

Detailed below is the precise basis for our recommendations.

Detailed advice

[Insert precise details of advice and circumstancesi.e.In purchasing or selling a business.]

[Insert references to Appendices, if any. IE In Appendix A Title is more detail concerning]

				May concisely summarises the strengths and weaknesses of the clients legal and practical position on each of those matters or actions (without going through the detail or simply regurgitating or repeating material which appears in the lengthier memo of advice)
				Concisely concludes by advising the client of the clients next steps (eg discussing aspects of your advice with you, supplying you with further information which you request and which is within the clients knowledge, authorising you to pursue further research on something, commencing proceedings, etc).

Accordingly, we recommend.

Disclaimers

[Insert any relevant disclaimers]. [For example: The advice given in this letter is for the recipient only and may not be suitable for other applications. The firm takes no responsibility for liability as a result of incorrect use of the above information. This advice is made on certain assumptions and using a particular case, if these circumstances change then any advice in this letter becomes void.

* * * *

Please do not hesitate to contact [insert name] on [insert direct phone number] if you have any questions in relation to this advice.

Yours sincerely {use if letter addressed to a particular person. IE Dear Joanne}

Yours faithfully {use if letter is generally addressed. IE Dear Sir/Madam/Public Officer}

[Insert signature]

[Insert the persons name is signing the letter]

[Insert the position of person signing the letter]

[Insert page break]