Edited version of private advice

Authorisation Number: 1051652516518

Date of advice: 01 April 2020

Ruling

Subject: Resident of Australia for income tax purposes

Question 1

Are you a resident of Australia for income tax purposes commencing June 2018 when you relocated to a foreign country to work as an expat?

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

Question 2

Are you deemed to be a resident of that foreign country pursuant to Article 4 of the Double Taxation Agreement (DTA)?

Answer

N/A.

As you are not found to be a resident of Australia for income tax purposes, the DTA is not required.

This ruling applies for the following period:

Year ending 30 June 2018

Year ending 30 June 2019

Year ending 30 June 2020

Year ending 30 June 2021

Year ending 30 June 2022

The scheme commences on:

1 July 2017

Relevant facts and circumstances

You were born in Country A.

You became a citizen of Country B in 196X.

You became an Australian citizen in 201X.

You gave up your country A citizenship when you gained citizenship elsewhere.

You currently reside in country C with your spouse.

You are employed as an expat

You hold a Visa which is employer sponsored and remains valid for 12 months

You are on a rolling year-to-year contract.

You lodge tax returns in Country C as you are a deemed resident of that country.

Your adult child resides in Australia.

You are paid into your Australian bank account.

You transfer your income into a bank account in Country C in order to fund your lifestyle.

You commenced work for your current employer on June 2018.

You lease an apartment in D as it is in close proximity to your work.

You receive an allowance from your employer for this accommodation in addition to your salary.

This apartment came with large furniture; however you were responsible for the smaller items such as appliances.

On occasion you are required to work in the capital. When you are in the capital, you stay in hotels or serviced apartments at a cost to your employer.

Your spouse does not accompany you when you travel to the capital.

You are occasionally required to travel to Australia for training.

You also occasionally visit Australia for vacations.

Prior to working for your current employer, you worked for E in State A for 8 months.

Between 2012 and 2017 you worked on a rotational basis for another employer in Country C.

During this time you continued to lodge Australian income tax returns as a resident for taxation purposes and declared your foreign income and foreign tax credits.

You own a mortgaged property in Australia which you rent out to your relative. This rent is deposited into an Australian bank account.

You have a garaged motor vehicle in Australia as well as a small amount of personal items in storage.

You hold Australian bank accounts as well as a bank account in Country C.

You are the shareholder and director of a dormant shelf company that was incorporated in Australia, holds no assets and has never carried on a business.

You hold a small amount of Australian superannuation in a public fund.

You do not own any other investments in Australia.

You remain a member of Australia's Medicare system however your employer provides you with full medical cover.

You remain on Australia's electoral role however it is your intention to remove yourself from this.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

Income Tax Assessment Act 1997 subsection 6-5(2)

Income Tax Assessment Act 1997 subsection 6-5(3)

Income Tax Assessment Act 1997 subsection 6-10

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