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Edited version of private advice
Authorisation Number: 1052205562216
Date of advice: 19 December 2023
Ruling
Subject: Income - assessability
Question
Is the income you earn in Australia assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No.
Your work as a specialist consultant falls within the definition of 'business'. As you work in Australia for short periods in an information collecting capacity, you do not have a 'permanent establishment' in Australia.
Therefore, under an article of Country A Tax Treaty, your income is only taxable in Country A as you were not carrying on your professional services through a permanent establishment in Australia.
The income you earned while working as a specialist consultant in Australia is therefore not assessable income under section 6-5 of the ITAA 1997. You will need to include the income in your Country A tax return.
This ruling applies for the following periods:
Period ended 30 June 2022
Period ended 30 June 2023
Period ending 30 June 2024
Period ending 30 June 2025
Period ending 30 June 2026
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You are a citizen of Country A and a resident of Country A for taxation purposes.
You are a specialist consultant.
You entered into a contract with an Australian company (Company X) to prepare reports on Australian patient cases.
You work exclusively by telehealth from your home in Country A and you fly to Australia 4-5 times a year.
When you are in Australia you interview various patients in consulting rooms organised by Company X and return to Country A to prepare reports for Company X.
You have an ABN and are registered for GST. You conduct the work as a contractor.
You are not an employee.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
International Tax Agreements Act 1953 section 4
International Tax Agreements Act 1953 section 5