Taxation¡§What criteria have been considered in the courts in deciding if an entity is a resident or non-resident of Australia for tax purposes?¡¨

Residence
The residency rules for the purposes of Australian income tax law are a combination of common law principles and statutory rules in ITAA 1936. The definition of ¡§Australia resident¡¨ in sec 995-1 of ITAA 1997 merely adopts the definition of ¡§resident¡¨ (or ¡§resident of Australia¡¨) in sec 6 (1) of ITAA 1936, which itself partly adopts common law principles.

Residence and source as criteria for liability
A taxpayer, whether an individual or a company, who is a resident of Australia is generally assessable on ordinary and statutory income derived from all source whether in or out of Australia (ITAA 1997 sec 6-5; 6-10). There are some important exceptions to this rule, for instance, for overseas employment income, approved oversea projects and certain temporary residents (foreign income exemption for temporary residents effective from 1 July 2002).
Income earned by some foreign companies and non-resident trusts is attributed to resident taxpayers and taxed o...