| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012560813576
Ruling
Subject: Assessability of income
Question and answer
Is the income you earn from carrying out professional services work assessable in Australia?
Yes.
This ruling applies for the following periods:
Year ended 30 June 2009
Year ended 30 June 2010
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ending 30 June 2014
The scheme commenced on:
1 July 2008
Relevant facts and circumstances
You are not a resident of Australia for taxation purposes.
You are a resident of country X for taxation purposes.
You are employed by a country X company to provide professional services in Australia.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Reasons for decision
Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes ordinary income gained from all sources, whether in or out of Australia. However, where you are a foreign resident (non-resident), your assessable income includes only that ordinary income derived from an Australian source.
Income earned from employment is ordinary income under section 6-5 of the ITAA 1997.
As you are a non-resident of Australia for taxation purposes you are assessable on your ordinary income derived in Australia.
The source (derivation) of a taxpayer's income is the place where the services are performed: French v. FC of T (1957) 98 CLR 398.
In your case, the income you earn while carrying out professional services has an Australian source as you are physically present in Australia when you carry out your duties.
As your employment income is ordinary income and is sourced (derived) in Australia, this income is assessable under section 6-5 of the ITAA 1997 regardless of your non-resident status in Australia.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
