Class Ruling

CR 2013/65W

Income tax: assessable income: Australian Agency for International Development employees deployed to the Solomon Islands to provide Official Development Assistance

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Notice of Withdrawal

Class Ruling CR 2013/65 is withdrawn with effect from 1 July 2014.

1. The Ruling is about the application of section 23AG of the Income Tax Assessment Act 1936 (ITAA 1936) to certain Australian Agency for International Development (AusAID) employees deployed to Solomon Islands. The Ruling applies to an arrangement under which the salary and allowances of those employees were exempt from taxation in the Solomon Islands under either:

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the Memorandum of understanding between the Government of Australia and the Government of the Solomon Islands on development cooperation (the MOU); or

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the Agreement between Solomon Islands, Australia, New Zealand, Fiji, Papua New Guinea, Samoa and Tonga concerning the operations and status of the police and armed forces and other personnel deployed in the restoration of law and order and security [2003] ATS 17 (the RAMSI Agreement).

2. On 1 November 2013 AusAID was absorbed into the Department of Foreign Affairs and Trade (DFAT) and former AusAID employees became employees of DFAT.

DFAT has advised that, as confirmed by a Third Party Note to the Government of the Solomon Islands, from 1 July 2014 the MOU does not apply to DFAT (former AusAID) employees deployed to the Solomon Islands.

DFAT has also advised that as from 1 July 2014 no DFAT (former AusAID) employee deployed to the Solomon Islands is part of a visiting contingent covered by the RAMSI Agreement.

From 1 July 2014, there are no longer any employees who are covered by the arrangement as described in the Ruling.

Commissioner of Taxation
1 October 2014

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Not previously issued as a draft

References

ATO references:
NO 1-5WS16WP

Related Rulings/Determinations:

IT 2650
TR 2006/10
TR 2013/D3
TD 2012/8

Subject References:
exempt income
foreign income
foreign income deductions
foreign salary & wages
foreign source income
international tax
overseas countries
overseas employees
overseas tax laws
official development assistance
residence of individuals
Solomon Islands

Legislative References:
ITAA 1936 23AG
ITAA 1936 23AG(1)
ITAA 1936 23AG(1A)
ITAA 1936 23AG(1AA)
ITAA 1936 23AG(1AA)(a)
ITAA 1936 23AG(2)
ITAA 1936 23AG(2)(a)
ITAA 1936 23AG(2)(b)
ITAA 1936 23AG(2)(c)
ITAA 1936 23AG(2)(d)
ITAA 1936 23AG(2)(e)
ITAA 1936 23AG(2)(f)
ITAA 1936 23AG(2)(g)
ITAA 1936 23AG(3)
ITAA 1936 23AG(6)
ITAA 1936 23AG(6)(a)(ii)
ITAA 1936 23AG(6)(a)(iii)
ITAA 1936 23AG(6)(b)
ITAA 1936 23AG(6A)
ITAA 1936 23AG(7)
ITAA 1997 6-5
ITAA 1997 6-5(2)
ITAA 1997 6-15(2)
ITAA 1997 11-15
ITAA 1997 Div 82
ITAA 1997 82-135(e)
ITAA 1997 82-135(f)
ITAA 1997 82-135(g)
ITAA 1997 82-135(i)
ITAA 1997 82-135(j)
ITAA 1997 83-295
ITAA 1997 Div 83A
ITAA 1997 295-200
ITAA 1997 Div 301
ITAA 1997 Div 302
ITAA 1997 Div 304
ITAA 1997 Div 305
Income Tax (Transitional Provisions) Act 1997 Div 82
TAA 1953
International Organisations (Privileges and Immunities) Act 1963

Other References:
Memorandum of understanding between the Government of Australia and the Government of Solomon Islands on development cooperation
Agreement between Solomon Islands, Australia, New Zealand, Fiji, Papua New Guinea, Samoa and Tonga concerning the operations and status of the police and armed forces and other personnel deployed to Solomon Islands to assist in the restoration of law and order and security [2003] ATS 17