Edited version of private advice

Authorisation Number: 1052053183607

Date of advice: 3 November 2022

Ruling

Subject: CGT - disposal of shares

Question

Are you entitled to disregard a capital gain or capital loss under section 855-10 of the Income Tax Assessment Act 1997 (ITAA 1997) on the disposal of your shares?

Answer

Yes.

It is accepted that you meet the conditions for the exemption to apply to the disposal of the shares.

This is because:

• You were a foreign resident at the time you disposed of the shares, and
• The shares are not taxable Australian property.

The shares are not considered to be taxable Australian property because they do not fall into any of the five categories set out in the table in section 855-15 of the ITAA 1997.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You were born in Australia. You are an Australian citizen.

While living in Australia you were renting a property and then you lived with your spouse at the time, in their home.

In 19XX you moved to Country A to volunteer. You had work visa.

In 19XX you moved to Country B to live.

Your two children were born in Country B.

You were granted Country B Landed Immigration Status which expired upon leaving.

You were self-employed in Country B for many years.

In 20XX you moved back to Australia.

During 20XX you lived in Country C for a short period, before returning to Australia.

In 20XX you moved to Country C.

Your essential household effects were shipped overseas, and the rest were given away to Op shops.

You worked for the Country C Government, and then for an International School in Country C.

In 20XX you were granted permanent residency in Country C.

While in Country C, you were involved in a hiking club, the Royal Geographic Society, and the Anthropology Society.

In 20XX you married a Country E resident. You and your current spouse moved to Country D and are currently still living there.

You are now retired and living in City A, in Country D.

You live in rented accommodation on a long term rental agreement.

After three years of living in Country D your Country C residency expired.

You have a Country D 10 year residency visa, which is renewable. This visa does not allow you to work.

You do not have an intention to return to Australia permanently at this point in time.

You have a car, household effects, a bank account and term deposits overseas.

You purchased shares over a number of years.

You own three properties in Australia. These properties are rented out.

You have bank accounts in Australia and own shares in two Australian companies.

You advised the Australian Electoral Office to have your name removed from the electoral roll.

You advised Australian Financial Institutions with whom you have investments that you are a foreign resident so that non-resident withholding tax could be deducted.

You are not an Australian Government employee or a member of the CSS or PSS super schemes.

You have sold the majority of the shares in the year ending 30 June 20XX and have made a capital gain upon disposal.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 855-10

Income Tax Assessment Act 1997 Section 855-15