Alex, is a designer, who came to Australia in November 2017 on an assignment creating colorful...

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Alex, is a designer, who came to Australia in November 2017 onan assignment creating colorful designs based on the vibrant colorsof the Great Barrier Reef. The project is expected to take six anda half months. Alex purchased a small boat so that she would beable to enjoy the islands she is using as inspiration for herdesigns and to take friends at weekends to the special locationsshe has discovered. Alex’s salary is paid into the Australian bankaccount she opened when she arrived. Alex intends to return toFrance, her country of domicile, and to her family when thecontract is over. Her father has agreed to look after all herassets and investments for her while she is on assignment inAustralia.
Alex was hoping that she may be considered non-resident forAustralian tax purposes and has come to you for advice.
Explain to Alex the factors that the ATO will take intoconsideration and comment on her likely residency status. Explainthe tax consequences of being classed a resident or not for taxpurposes.

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TO BE AN AUSTRALIAN RESIDENT SOMEONE MUST MEET ANYONE OF THE FOLLOWING CONDITION 1 DEMONSTRATE YOUR LIVING AND WORKING ARRANGEMENTS ARE CONSISTENT WITH MAKING AUSTRALIA YOUR See Answer

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Transcribed Image Text

Alex, is a designer, who came to Australia in November 2017 onan assignment creating colorful designs based on the vibrant colorsof the Great Barrier Reef. The project is expected to take six anda half months. Alex purchased a small boat so that she would beable to enjoy the islands she is using as inspiration for herdesigns and to take friends at weekends to the special locationsshe has discovered. Alex’s salary is paid into the Australian bankaccount she opened when she arrived. Alex intends to return toFrance, her country of domicile, and to her family when thecontract is over. Her father has agreed to look after all herassets and investments for her while she is on assignment inAustralia.Alex was hoping that she may be considered non-resident forAustralian tax purposes and has come to you for advice.Explain to Alex the factors that the ATO will take intoconsideration and comment on her likely residency status. Explainthe tax consequences of being classed a resident or not for taxpurposes.