Fred, an executive of a British corporation specialising in management consultancy, comes to Australia to set up a branch of his company

Fred, an executive of a British corporation specialising in

management consultancy, comes to Australia to set up a branch of

his company. Although the length of his stay is not certain, he

leases a residence in Melbourne for 12 months. His wife

accompanies him on the trip but his teenage sons, having just

commenced college, stay in London. Fred rents out the family home.

Apart from the absence of his children, Fred’s daily behaviour is

relatively similar to his behaviour before entering Australia. As well

as the rent on the UK property, Fred earns interest from

investments he has in France. Because of ill health Fred returns to

the UK 11 months after arriving in Australia.

Requirement

Discuss whether Fred is a resident of Australia for taxation

purposes.

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