The full bench of the Federal Court of Australia has published its decision in Harding v Commissioner of Taxation.
The full bench of the Federal Court of Australia published its decision in Harding v Commissioner of Taxation on 25 February. The full bench overturned last year’s decision by the single judge, and found that the taxpayer was a non-resident of Australia by virtue of having established a permanent place of abode in Bahrain.
In Harding , the taxpayer accepted that he was an Australian-domiciled person. On that basis, he could only cease Australian tax residence if he had ceased to reside here under ordinary concepts, and had also established a permanent place of abode outside Australia.
The taxpayer was an Australian citizen living and working in the Middle East for more than six years. During this period, Mr. Harding stayed in a number of fully furnished apartments within the one apartment complex in Bahrain.
The case concerned only one of the years of income during which Mr Harding lived in Bahrain. The single judge had found that for this year, the taxpayer had ceased to reside in Australia under ordinary concepts.
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