| Disclaimer 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 private advice
Authorisation Number: 1051998887561
Date of advice: 29 June 2022
Ruling
Subject: Residency
Question 1
Are you a temporary resident?
Answer
Yes. Based on the information provided to the Commissioner, you are a temporary resident under the Income Tax Assessment Act 1997 (ITAA 1997). You meet the requirements within the meaning of section 995-1of the ITAA 1997 as you hold the temporary special category visa and meet the health and character requirements.
Question 2
Is the capital gain derived from the sale of shares in XXXX disregarded pursuant to Section 768-915 of the ITAA 1997?
Answer
Yes. Section 768-915 of the ITAA 1997 applies if you are a temporary resident so that a capital gain or capital loss you make from a CGT event is disregarded where the CGT event happens in relation to a CGT asset that is not taxable Australian property. Based on the information provided to the commissioner as a temporary visa holder and a temporary resident of Australia, your capital gain derived from the sale of shares in XXXX is disregarded pursuant to Section 768-915 of the ITAA 1997.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You arrived in Australia with your family a number of years ago.
You and your spouse are citizens of Country Y.
You and your spouse have been tax residents of Australia since your arrival in Australia.
You and your spouse have a temporary visa.
You were granted Options to acquire XXXX shares in XXXXX under an employee share scheme ("ESS"). The ESS was a plan eligible for the start-up reduction in Section 83A-33 of the ITAA 1997.
In the 20XX income year, you exercised the Options and acquired XXXX shares in XXXX for their exercise price of $XX.XX per share.
You transferred the shares to a Custodian under a bare trust arrangement. This transfer of the shares to the Custodian was covered by a Class Ruling and the shares were then held by the Custodian under the Custodian Deed referred to in the Class Ruling.
The shares are currently held by the Custodian on your behalf.
Your interest in XXXX is less than 0.5% of the issued capital of the company; and you (through the Custodian) have disposed of the above shares to an unrelated party and derived a capital gain.
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).
