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Edited version of private advice
Authorisation Number: 1051991373324
Date of advice: 8 June 2022
Ruling
Subject: Capital gains tax
Question
Is the deferred capital gain made on the sale of Australian shares assessable in Australia?
Answer
No.
Based on the information provided to the Commissioner the Capital gains tax which may arise when you sell the Australian shares will be taxable in Country Z as per Article 13 (5) of the Double tax Agreement between Australia and Country Z.
You deferred the tax by making an I1 election to defer any CGT when you left Australia.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are not a resident of Australia for taxation purposes.
You went to Country Z several years ago at which time you ceased to be a resident of Australia for taxation purposes.
At the time you left Australia you held Australian listed shares.
You did not report capital gains I1 event in your tax return as you elected to defer the CGT until you sold the shares.
You will sell the shares in the relevant income year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10