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Edited version of private ruling
Authorisation Number: 1011658442971
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Ruling
Subject: Residency
Are you a resident of Australia under the relevant Article of the Double Taxation Agreement between Australia and the foreign country in which you are working?
Yes.
This ruling applies for the following periods:
Year ending 30 June 2010
Year ending 30 June 2011
The scheme commenced on:
1 July 2009
Relevant facts and circumstances
We previously made a ruling but you have asked that your ruling cover all of the income years in which the arrangement applies.
You are an Australian resident for taxation purposes.
You are a resident of a foreign country for taxation purposes.
You work for an Australian resident company in that foreign country.
You have been seconded for 12 months to work in that foreign country.
Your secondment may be extended.
You do not intend to live in the foreign country permanently.
You intend to return to Australia when your secondment is completed.
You have a permanent home in Australia which is not being rented out while you are overseas.
Your home still contains your personal belongings.
Your employer has provided you with an apartment which is partially furnished and a car for the duration of your secondment.
You have a gym membership in the foreign country which is for 12 months.
Your partner has accompanied you overseas for the duration of your secondment.
You commenced work in the foreign country in the 2009-10 income year.
You have maintained your bank accounts in Australia.
You have maintained your health insurance in Australia.
You have maintained your motor vehicle in Australia.
You have maintained your gym membership in Australia.
Relevant legislative provisions
International Tax Agreements Act 1953
Reasons for decision
An Article of the foreign country Agreement deals with the issue of residency.
You are resident of both Australia and the foreign country for taxation purposes so a subparagraph is used to determine which country you we be a resident of for the purposes of the Double Tax Agreement - you will still be a resident of both countries for the purpose of the application of domestic taxation law.
The Commissioner considers that you are an Australian resident for the purposes of the Double Tax Agreement. As you have a permanent home available to you in Australia and not in the foreign country. Your overseas accommodation is provided by your employer and only for the term of your secondment.
Note that if your overseas accommodation was also a permanent home then your personal and economic relations are closer with Australia so you would still be a resident of Australia for the purposes of the Double Tax Agreement.