Addy v Commissioner of Taxation

Income tax (Cth) – Where Art 25(1) of Convention between Australia and United Kingdom for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains ("United Kingdom convention") provides United Kingdom nationals not be subjected in Australia to "other or more burdensome" taxation than imposed on Australian nationals "in the same circumstances, in particular with respect to residence" – Where Pt III of Sch 7 to Income Tax Rates Act 1986 (Cth) applied new tax rate to persons holding Working Holiday (Temporary) (Class TZ) (Subclass 417) visa ("working holiday visa") – Where new tax rate imposed on working holiday visa holders more burdensome than tax rate imposed on Australian nationals deriving taxable income from same source during same period – Where new tax rate under Pt III of Sch 7 differentiates between Australian residents for tax purposes who hold working holiday visas and others who do not – Where Commissioner of Taxation assessed United Kingdom national who was Australian resident for tax purposes applying Pt III of Sch 7 – Whether application of Pt III of Sch 7 contravened Art 25(1) of United Kingdom convention.

Words and phrases – "Australian resident for taxation purposes", "bilateral agreements", "discrimination based on nationality", "discriminatory treatment", "double taxation treaties", "hypothetical comparator", "in the same circumstances", "non-discrimination clause", "non-resident taxpayer", "OECD Model Convention", "other or more burdensome", "resident taxpayer", "tax burden", "working holiday maker", "working holiday taxable income", "working holiday visa".

Income Tax Act 1986 (Cth) – ss 4 and 5(1).

Income Tax Rates Act 1986 (Cth) – Pts I and III of Sch 7.

International Tax Agreements Amendment Act 2003 (Cth) – Sch 1.