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Edited version of private advice
Authorisation Number: 1051529059260
Date of advice: 17 June 2019
Ruling
Subject: Dividend payment
Question 1
Are you assessable on the dividends paid from a non-resident company?
Answer
No. The dividend is paid to a temporary resident for taxation purposes by a non-resident company out of profits from its overseas operations, and the dividend is sourced internationally.
Question 2
Are you assessable on the dividends paid from the company where the company is a resident of Australia?
Answer
Not applicable
This ruling applies for the following period:
Year ending 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You were born overseas and remain a citizen this country.
In 20XX you moved to Australia and you are a temporary resident for Australian taxation purposes.
You retain an ownership interest in an international incorporated company and you are the sole director.
You own 99% of the shares on issue and the company is a non-resident for taxation purposes.
The company does not conduct its business or trading affairs in Australia.
It is your intention to sell the business. Upon its disposal the company will make a capital gain. The company will then pay out the profits to the shareholders including you, as dividends. The company will then cease to trade.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 6(1)(b)
Income Tax Assessment Act 1936 section 44
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-10
Income Tax Assessment Act 1997 section 6-15
Income Tax Assessment Act 1997 section 768-910
Income Tax Assessment Act 1997 section 995-1
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