An Australian citizen with his family was resided overseas for 28 years as a professional employee. During that time, he was a non-resident for tax purposes.
He decided to retire and relocate to Australia. His wife and children returned to Australia some months before he did to establish the family home. His employment entitlements on retirement were paid to him after his family relocated in Australia. The change of status for his investments also occurred at this time.
The ATO determined that he became an Australian resident at the time his family relocated. This had substantial financial ramifications for him.
Cleary Bentley were instructed by his accountant to analyse the circumstances of his retirement and relocation and that of his family.
Cleary Bentley with the assistance of the accountant reviewed the professional’s employment contract, his offshore and onshore activities and financial arrangements.
In a review by the ATO, Cleary Bentley presented his case with the evidence that supported his date for resuming his Australian residency.
As a result of the argument presented by Cleary Bentley, it was conceded by the ATO that he had become an Australian resident for tax purposes at the time he relocated, not his family. His employment entitlements and the change in his financial arrangements were assessed as a non-resident for tax purposes.