Quy and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered the residency status of the Applicant for taxation purposes during the income years ending 30 June 2016 to 30 June 2020. The Applicant, an Australian citizen born in Vietnam, sought a refund of $524,943.29 in Pay As You Go (PAYG) tax withheld from his income. The dispute centred on whether the Applicant was an Australian resident for tax purposes during the period he was working on an international assignment in Dubai.

The Tribunal was required to determine if the Applicant was an Australian resident according to the Ordinary Concepts Test and the Domicile Test. This involved assessing whether the Applicant had established a permanent place of abode outside Australia and considering his overall connection to Australia and Dubai. The Applicant contended he was a non-resident for tax purposes during the relevant income years, having relocated to Dubai for work and considering it his sole home.

The Tribunal found a significant disparity between the Applicant's evidence presented at the hearing and his subsequent submissions and affidavit. It considered the Applicant's evidence given under affirmation at the hearing, along with his responses to the Commissioner's Residency Questionnaire, to be more reliable than the later-filed documents. The Tribunal noted contradictions regarding the marital living arrangements, the care of their adult daughters, and the duration of the Applicant's wife's presence in Australia. Ultimately, the Tribunal concluded that the Applicant had not discharged his onus to prove he was not a resident of Australia for taxation purposes for the income years in question.

Accordingly, the Tribunal affirmed the decisions under review, finding that the Applicant was a resident of Australia for taxation purposes under both the Ordinary Concepts Test and the Domicile Test for the income years ending 30 June 2016 to 30 June 2020. The Applicant's claim for a refund of PAYG withholdings was therefore dismissed.