Taxation¡§What are the tax implications of a non-resident becoming a resident and 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.
A non-resident is generally liable to Australian tax only on ordinary and statutory income from Australian sources. This general rule is subject to a number of exceptions, such as the liability of non-residents to withholding tax on dividends, interest and royalties is not dependent on the source of amounts received, and the liability of a non-resident to CGT is not dependent on the source of the gain.
If a tax payer does not fall within the specific definition of ¡§resident¡¨, the taxpayer will automatically be regarded as a non-resident. This is because a non-resident is a person who is not a reside...