RESIDENCY AND INTERNATIONAL TAX ISSUES

Course overview

This professional course provides a comprehensive overview of Australian tax residency rules for individuals and companies. It covers how residency status affects tax obligations; the tests and special categories used to determine an individual’s tax residency; the tax implications of acquiring or ceasing Australian tax residency; and key international tax considerations, including double taxation agreements and anti-avoidance measures.

Course objectives
– Understand how tax residency status affects an individual’s tax obligations and scope of taxable income in Australia.
– Identify and apply the four tests for determining individual tax residency under Australian law.
– Explain the special tax rules applicable to temporary residents and working holiday makers.
– Outline the tax implications and planning considerations when individuals become or cease to be Australian tax residents, including capital gains tax consequences.
– Recognise corporate tax residency criteria and describe international tax measures (such as double tax agreements, transfer pricing, thin capitalisation and related rules) that impact cross-border taxation.

Learning outcomes
– Determine whether a taxpayer is an Australian resident for tax purposes using the ordinary concepts test and statutory tests.
– Evaluate the differences in tax treatment between residents and non-residents, including income subject to Australian tax and applicable tax rates.
– Apply special tax provisions for temporary residents and working holiday makers in practical scenarios.
– Advise on tax obligations and options when a person commences or ceases Australian tax residency, particularly regarding capital gains tax and foreign income tax offsets.
– Navigate corporate residency rules and identify situations where international tax measures (like double tax agreements, transfer pricing rules, thin capitalisation limits, and the diverted profits tax) apply.