The & # 39; backpacker tax & # 39; Australia is thrown out by the court
75,000 travelers stand in line for a tax deduction after the court finds that the & # 39; backpacker tax & # 39; from Australia to foreign workers is illegal after complaint from British woman
- British Catherine Addy won her battle with the Australian tax authorities yesterday
- A court ruled that she should not have had a tax assessment due to a pact between the UK and Australia
- There are an estimated at least 75,000 working vacationers in Australia
Thousands of travelers to Australia can stand in line for a refund after a British woman won her battle for a & # 39; backpacker tax & # 39; declare it illegal.
Drama student Catherine Addy receives a £ 1,100 rebate after a court in Brisbane ruled that the tax was aimed illegally at foreign workers.
The tax cannot be applied to British working visitors due to a double tax treaty between Australia and the UK, the court ruled.
There are an estimated at least 75,000 working vacationers in Australia and the decision can cost the government of Canberra millions of dollars.
Drama student Catherine Addy (photo) receives £ 1,100 discount after a court in Brisbane ruled that the tax was aimed illegally at foreign workers
Similar tax treaties have been concluded with the United States, Germany and various other countries.
Many of Australia's thousands of backpackers and seasonal workers come from those countries.
& # 39; In the context of these working vacationers, this is a very important judgment & # 39 ;, said lawyer Mark Chapman.
& # 39; There are many. There would be tens or even hundreds of thousands here on this working vacationer's visa and part of it would in fact be eligible as residents based on their circumstances. & # 39;
Mrs. Addy, from Bexleyheath, London, worked at a horse farm in Western Australia before serving at hotels in Sydney.
A judge accepted that renting from a shared house in Sydney should not have given her a tax assessment.
& # 39; That's a disguised form of discrimination based on nationality & # 39 ;, he said in his judgment, published on Wednesday.
Catherine Addy (photo), from Bexleyheath, London, worked at a horse farm in Western Australia before serving at hotels in Sydney
There are an estimated at least 75,000 working vacationers in Australia (photo: Sydney Harbor) and the decision can cost the government of Canberra millions of dollars
Addy remained mainly in New South Wales after she arrived in Australia in 2015 and was considered a & # 39; resident & # 39; for tax purposes.
According to the government website, others traveling from place to place can be classified as & # 39; foreign residents & # 39; for taxation.
The Australian tax office said it was considering appealing the decision.
It added that the ruling only affects a minority of working vacationers who are also residents, and only to countries from countries affected by a similar clause in the double taxation agreement with their home country & # 39 ;.
Under the laws that were introduced in January 2017, visitors on working holiday visas were no longer entitled to a tax exemption for the first $ 18,200 they earned.
A 15 percent charge was applied to every dollar earned under two categories of working holiday visas.
Canberra had originally sought a levy of up to 32.5 percent, but was faced with a protest from farmers who depend on visitors for seasonal work.
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