Case study 1: Residence and source

Fred, an executive of a British corporation specializing in management consultancy,

comes to Australia to set up a branch of his company. Although the length of his stay

is not certain, he leases a residence in Melbourne for 12 months. His wife

accompanies him on the trip but his teenage sons, having just commenced college,

stay in London. Fred rents out the family home. Apart from the absence of his

children, Fred’s daily behavior is relatively similar to his behavior before entering

Australia. As well as the rent on the UK property, Fred earns interest from

investments he has in France. Because of ill health Fred returns to the UK 11 months

after arriving in Australia.

Requirement

Discuss whether Fred is a resident of Australia for taxation purposes. ( 4

Marks, maximum 500 words)

Case study 2: ordinary income

Explanations of the respective outcomes reached by the courts in the following cases

which all involving sales of land 

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