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Edited version of private advice
Authorisation Number: 1051519935119
Date of advice: 20 May 2019
Ruling
Subject: Residency of Australia for taxation purposes
Question
Is the income derived in Country Y and country Z assessable in Australia?
Answer
Yes.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are a resident of Australia for taxation purposes.
You are an Australian government employee.
You commenced a short term contract in Country Y with a client in mth/20XX which was extended to mth/20XX.
You worked in Country Y during this contract from a home office in a rented house in Country Y and from an office supplied by your client.
You have not paid tax in Country Y on the income derived in country Y.
In mth/20XX you commenced a contract with the Country Z Government.
The Country Z government paid all expenses.
You did not pay tax on this income in Country Z as Country Z does not have income tax.
You have not declared any of this income in your Australian tax returns.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1)
Income Tax Assessment Act 1936 Subsection 6(1)
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 income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source.
As a resident of Australia for taxation purposes you are required to declare your worldwide income from both Country Y and Country Z in your Australian tax returns.
You are required to amend the relevant tax returns to include this income.