The income tax implications of a foreign individual contracting to do business in Australia, with particular reference to the concepts of 'residence' and 'source'

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Abstract

In order to counteract the burgeoning tax burden that may be imposed in an era of increasing international trade and travel, many countries have subsequently utilised the terms of the Model Convention as a basis for the negotiation of double taxation treaties with their trading partners. While a DTA can go a long way to ensuring that a resident of one country will not be taxed twice if he contracts to do business in a trading partner country, one must bear in mind that these treaties are of bilateral and not international application. Where an individual contracts to do business in a non-treaty partner country, he will be at the mercy of that country's domestic tax legislation.
As Australia levies taxes on the basis of residence and source, I propose to examine Australia's domestic residence and source rules applicable to foreign individuals in terms of the common law and income tax legislation, and then to review the requisite residence and source aspects of double taxation treaties.
Original languageEnglish
Pages (from-to)35-59
Number of pages25
JournalBond Law Review
Volume9
Issue number1
Publication statusPublished - 1997

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Contracting
Income tax
Treaties
Double taxation
Tax
Legislation
International travel
International trade
Residents
Bilateral
Common law
Tax burden

Cite this

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title = "The income tax implications of a foreign individual contracting to do business in Australia, with particular reference to the concepts of 'residence' and 'source'",
abstract = "In order to counteract the burgeoning tax burden that may be imposed in an era of increasing international trade and travel, many countries have subsequently utilised the terms of the Model Convention as a basis for the negotiation of double taxation treaties with their trading partners. While a DTA can go a long way to ensuring that a resident of one country will not be taxed twice if he contracts to do business in a trading partner country, one must bear in mind that these treaties are of bilateral and not international application. Where an individual contracts to do business in a non-treaty partner country, he will be at the mercy of that country's domestic tax legislation.As Australia levies taxes on the basis of residence and source, I propose to examine Australia's domestic residence and source rules applicable to foreign individuals in terms of the common law and income tax legislation, and then to review the requisite residence and source aspects of double taxation treaties.",
author = "Michelle Wills",
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T1 - The income tax implications of a foreign individual contracting to do business in Australia, with particular reference to the concepts of 'residence' and 'source'

AU - Wills, Michelle

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N2 - In order to counteract the burgeoning tax burden that may be imposed in an era of increasing international trade and travel, many countries have subsequently utilised the terms of the Model Convention as a basis for the negotiation of double taxation treaties with their trading partners. While a DTA can go a long way to ensuring that a resident of one country will not be taxed twice if he contracts to do business in a trading partner country, one must bear in mind that these treaties are of bilateral and not international application. Where an individual contracts to do business in a non-treaty partner country, he will be at the mercy of that country's domestic tax legislation.As Australia levies taxes on the basis of residence and source, I propose to examine Australia's domestic residence and source rules applicable to foreign individuals in terms of the common law and income tax legislation, and then to review the requisite residence and source aspects of double taxation treaties.

AB - In order to counteract the burgeoning tax burden that may be imposed in an era of increasing international trade and travel, many countries have subsequently utilised the terms of the Model Convention as a basis for the negotiation of double taxation treaties with their trading partners. While a DTA can go a long way to ensuring that a resident of one country will not be taxed twice if he contracts to do business in a trading partner country, one must bear in mind that these treaties are of bilateral and not international application. Where an individual contracts to do business in a non-treaty partner country, he will be at the mercy of that country's domestic tax legislation.As Australia levies taxes on the basis of residence and source, I propose to examine Australia's domestic residence and source rules applicable to foreign individuals in terms of the common law and income tax legislation, and then to review the requisite residence and source aspects of double taxation treaties.

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JO - Bond Law Review

JF - Bond Law Review

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