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3.4. Potential Loss of Tax Residence Status by Domestic Entities

A legal entity formed in Australia would normally lose its corporate residence status if none of the residence tests described above no longer applies to it.

In addition, certain dual resident companies are treated as non-residents in order to deny them certain advantages they would otherwise have obtained by being able to utilize their dual residence status (e.g. double deductions in both countries of residence). These comprise "dual resident investment company" and a "prescribed dual resident".