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Edited version of private advice
Authorisation Number: 1051588071037
Date of advice: 30 September 2019
Ruling
Subject: Capital gains tax
Question
Will any capital gain or loss you make on the disposal your shares be disregarded?
Answer
Yes. It is accepted that the gain that you have received from the disposal of your shares is not taxable in Australia as you are not a resident of Australia for taxation purposes and your shares are not taxable real property.
In order to have the withholding refunded to you, you will need to lodge an income tax return.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are not an Australian resident for taxation purposes.
You purchased shares in a company.
The company merged with another company resulting in the sale of your shares.
The sale of the shares resulted in a gain.
You and your associates did not own more than 10% of the shares in the company.
An amount was withheld from the sale and provided to the Australian Taxation Office as foreign resident capital gains withholding.
You are requesting the amount be refunded to you.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 6(1)
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 885-10
Income Tax Assessment Act 1997 section 885-30