Some people may believe that if they go overseas to work, they will be exempt from Australian income tax. Think again.
Wilson v FC of T
In a decision that was held by the AAT, it was determined that income received by a taxpayer by working as a contractor for the US Army overseas was not exempt from tax in Australia under ITAA 1936 s 23AF.
The taxpayer was employed as an electrician and mechanic by an American company and classified as a contractor for the US Army. He received $138,465 for providing services in Afghanistan on at least four occasions in the 2010/11 income year.
The Commissioner considered that the amount received by the taxpayer was assessable income and that it was not exempt from tax under s 23AF.