Addy v. Commissioner of Taxation

Lower Court Judgment

06/08/2020 Federal Court of Australia (Davies, Derrrington and Steward JJ)

[2020] FCAFC 135

Catchwords

Taxation – Double taxation treaty – Non-discrimination clause – Where Art 25 of Australia and United Kingdom Double Taxation Treaty provides foreign nationals shall not be subjected to more burdensome tax treatment compared to hypothetical Australian national in same circumstances – Where applicant citizen of United Kingdom and holder of working holiday visa – Where working holiday visa-holders subject to special working holiday tax rate in Pt III of Sch 7 of Income Tax Rates Act 1986 (Cth) – Where applicant taxed $3,986 compared to $1,591.44 by Australian national on same income – Where applicant selected as test case by respondent Commissioner – Where Federal Court held applicant entitled to benefit of Art 25 – Where respondent successfully appealed to Full Court – Whether applicant subject to more burdensome taxation by reason of nationality – If so, whether applicant Australian resident for tax purposes.