Residency Corporate tax 2015

When is a company incorporated outside Australia a resident of Australia?

Source: The Tax Specialist Journal Article

Published Date: 1 Jun 2015


Whether or not it is correct that the concepts of source and residence are losing their significance, residence for tax purposes is still an important question under Australian tax law, and one with significant consequences. This article focuses on the residence of corporations for Australian tax purposes. The traditional authorities on corporate residence, as well as the tax treaty position, are reviewed. The implications of the recent decision in Hua Wang Bank Berhad v FCT (currently under appeal) are discussed.

The article concludes with observations about the future of corporate residence principles. Internationally, the trends are towards transfer pricing-based source rules, territorial tax systems, and the lowering or abolition of permanent establishment thresholds. The author predicts that corporate residence will become less significant over time and concludes that this is consistent with the corporate tax's character as a source tax.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Residency Corporate tax 2015

Share this page