| Disclaimer This edited version has been archived due to the length of time since original publication.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. 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: 1051525750859
Date of advice: 03 June 2019
Ruling
Subject: Residency
Question
Are you a resident of Australia for income tax purposes?
Answer
No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were employed by Company A in Australia for the period March 20XX to July 20XX.
In July 20XX you ceased employment with Company A and travelled to Country A to commence employment with Company B. Company B is owned by the same parent company as Company A.
Your intention was to remain overseas for a minimum of two years. Your flight departure card was marked "Australian Resident departing permanently" in accordance with this intention.
The employment contract at Company B was initially for one year however there was an understanding that this would be extended provided all parties were happy with the arrangement. There was no requirement for you to return to Company A and in fact had to renegotiate to be reemployed on your return to Australia.
You resided in rental accommodation in Australia and the lease on this property was terminated.
You had minimal belongings which were either sold or given to relatives and friends to use.
No real estate property was or is owned by you in Australia.
You resided in rental accommodation in Country A, the lease was for a 12 month term as is common in Country A and to coincide with the initial employment contract term.
You resided in Country A with your spouse.
You cancelled your Australian Health Insurance.
You opened bank accounts with an international bank into which your salary was paid in Country A. All Australian accounts were closed except those that remained open for travel funds and to receive backpay from Company A.
Despite the intention to remain in Country A for in excess of three years the following circumstances changed:
· You were offered an Australian based job which was an opportunity you could not refuse.
As a result you resigned from Company B and returned to Australia in 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 6-5(1)
Income Tax Assessment Act 1997 subsection 995-1(1)
Income Tax Assessment Act 1936 subsection 6(1)