Australia Tax Agency Explains Tax Residence Status for Working Holiday Visa Holders Under Specific DTAs

The Australian Taxation Office Dec. 17 opened a consultation on a decision impact statement explaining tax residence status under DTAs with Chile, Finland, Germany, Israel, Japan, Norway, Turkey, and the U.K. A U.K. resident taxpayer visited Australia on a working holiday visa for one year, and later extended her stay by a year. The taxpayer was assessed taxes at the rate of working holiday visa holders on the income she earned in Australia. The taxpayer challenged that assessment, requesting to be taxed under the lower rate for residents, under the application of non-discrimination provisions in the DTA between the U.K. ...