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Fred, an executive of a British corporation specializing in management consultancy, comes to Australia to set up a branch of his company.

01 / 10 / 2021 Tax

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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)




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