Question

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to work on a shortterm project to assist with the establishment of a branch office of the company in Australia. Pablo works in Australia for one month. Throughout this period, his salary was paid into his Portuguese bank account. During the year, he earned the equivalent of A$120,000 from his employment. Does Pablo have to pay Australian tax on any of his salary? (450 WORDS) WANT PROPER EXPLANATION WITH PROPER LAW SECTION

Answer 1

The source of his income comes from outside of AU. His investmentincome comes from overseas source as well. But because he is Australian resident, hecould be double taxed (Australia – residency, pourtuguese – source and ). There isDTA between Australia and pourtuguese

Issue:Australia right

To taxRule:same as last question

Application and Analysis:factsResides TestDomicile Test183-day

TestPhysical presence :1 month1 month1 month

Conclusion:Pablo has all the family ties, financial ties and place of abode outside AU. He failsall the test. The one-month income source will be taxed in AU, but other 11 months will not be pay