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This edited version has been archived due to the length of time since original publication.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.

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Edited version of your written advice

Authorisation Number: 1012815899951

NOTICE

This edited version has been found to be misleading or incorrect. It does not represent the ATO’s view of the relevant law.

This notice must not be taken to imply anything about:

Edited versions cannot be relied upon as precedent or used for determining how the ATO will apply the law in other cases.

Ruling

Subject: Assessable income

Questions and answers:

Withdrawn.

No.

This ruling applies for the following periods:

Year ending 30 June 2014

Year ending 30 June 2015

Year ending 30 June 2016

The scheme commenced on:

1 July 2013

Relevant facts and circumstances

You are an official of an international organisation employed on a month fixed term international appointment in country Y. You will be receiving a salary. Your employment is subject to the conditions and criteria in the international organisations staff regulations and staff rules.

You will not have lived in Australia for the period that you are employed by the international organisation.

You are not liable to pay any taxes in country Y.

Relevant legislative provisions:

Income Tax Assessment Act 1997 Subsection 6-5(2),

Income Tax Assessment Act 1997 Subsection 6-15(2),

Income Tax Assessment Act 1997 Subsection 6-20(1) and

International Organizations (Privileges and Immunities) Act 1963 paragraph 2 part 1 schedule 4.

Reasons for decision

Residency

Subsection 359-10(3) of the Schedule 1 of the Tax Administration Act 1953 (TAA) provides that the applicant for a private ruling may withdraw an application at any time before the ruling is made.

Your agent notified the Commissioner orally on a specific date in May 2015 of your intention to withdraw your question in relation to residency on your application for a private ruling. As a ruling had not been made by this date, your request is valid and this question has been withdrawn.

Assessable income

Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of an Australian resident will include ordinary income derived from all sources, whether in or out of Australia, during the income year.

Income from your salary and wages is ordinary income for the purposes of subsection 6-5(2) of the ITAA 1997.

However, subsection 6-15(2) of the ITAA 1997 provides that if an amount is exempt income then it is not assessable income.

Section 6-20 of the ITAA 1997 provides that an amount of ordinary income is exempt income if it is made exempt from income tax by a provision of the ITAA 1997 or another Commonwealth law.

The International Organisations (Privileges & Immunities) Act 1963 (IO(P&I)A) is a Commonwealth law under which an international organisation, and persons engaged by it, may be accorded certain privileges and immunities including an exemption from tax.

Subsection 5(1) of the IO(P&I)A provides that the regulations may declare an organisation to be an organisation to which this Act applies.

Paragraph 3(1)(b) of the IO(P&I)A defines the term an 'international organisation to which this Act applies' to mean an organisation that is declared by the regulations to be an international organisation to which this Act applies, and includes a body established by such an organisation.

The organisation that you are employed by is an international organisation listed in the regulations of the IO(P&I)A, therefore your employer is an international organisation to which IO(P&I)A applies.

Subparagraph 6(1)(d)(i) of the IO(P&I)A provides that the regulations may confer all or any of the privileges and immunities set out in Part I of the Fourth Schedule upon a person who holds an office in an international organisation to which this Act applies, not being an office prescribed by the relevant regulations as a high office.

Paragraph 2 of Part I of the Fourth Schedule to the IO(P&I)A provides an exemption from taxation on salary and emoluments received from the international organisation.

As you are an official of an international organisation to which the IO(P&I)A applies, the income received by you from your employment is exempt from Australian tax in accordance with subparagraph 6(1)(d)(i) of the IO(P&I)A and the relevant regulations made under that Act that relate to the organisation.

Accordingly, as the income is exempt under section 6-20 of the ITAA 1997 it is not assessable under subsection 6-5(2) of the ITAA 1997.

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