Edited version of private advice

Authorisation Number: 1051614852986

Date of advice: 5 December 2019

Ruling

Subject: Residency

Question

Are you an Australian resident for income tax purposes for the period from (Month) 20XX to 30 June 20XX?

Answer

No. Given regard to your circumstances as a whole and a consideration of 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 ending 30 June 2016

Year ending 30 June 2017

Year ending 30 June 2018

Year ending 30 June 2019

Year ending 30 June 2020

The scheme commences on:

(Month) 20XX

Relevant facts and circumstances

You were born in Australia and lived here until the year 20XX.

In April 20XX you decided to move to Country B.

In November 20XX you formed a business with your business partner.

You have lived at the same address from when you arrived in Country B until now. You have a permanent lease at this property.

You return to Australia infrequently for special occasions such as weddings, significant birthdays or other serious family matters.

You have since met your partner who moved to Country B to live with you.

You and your partner started an online retail business which is registered in Country C, with the business operations predominantly in Country B and Country C.

You are the major shareholder in this business.

You have also undertaken and are currently working on an investment in a property management company in Country B.

You have recently left your original business to focus on the property management business and the business with your partner, given the unexpected early success of the online retail business.

Your intention is to travel overseas for a six week holiday and either purchase a property in Country D and permanently reside there, or purchase and construct a new property in Country B for the long term.

You do not own property in Australia.

You do not intend to return to reside in Australia.

You do not have superannuation in Australia because you barely worked while you were here as your family was able to support you.

You do not have any major assets in Australia. You had a bank account which has been recently closed.

You used this Australian bank account while in Country B, for Australian clients of the original business who couldn't transfer directly to an account in Country B so instead they would transfer to your Australian account.

As you were concerned about the financial security of your money in Country B you would on occasion hold money in your Australian bank account. There was never more than a few thousand dollars held in the account during this period.

You used a travel money card from the Australian bank to fund your life in Country B as it took a long time to be able to open a bank account in Country B due to their systems and procedures.

The majority of your assets are held in Country B. These include motorbikes, furniture and fittings, a permanent lease agreement, bank accounts, social accounts, and money.

You have some assets in Country E and Country C.

You have never been employed by the Commonwealth Government.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

Income Tax Assessment Act 1997 subsection 995-1(1)