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Edited version of private advice
Authorisation Number: 1052333783478
Date of advice: 4 December 2024
Ruling
Subject: Residency
Question 1
Is AusCo a resident of Australia under subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer 1
Yes.
This ruling applies for the following period:
Year ended XX June 20XX to the year ended XX June 20XX
The scheme commenced on:
XX July 20XX
Relevant facts and circumstances
AusCo
AusCo is a company incorporated in Australia.
AusCo is a wholly owned subsidiary of ForeignCo.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 6(1)
Income Tax Assessment Act 1997 subsection 995-1(1)
Reasons for decision
Question
Is AusCo a resident of Australia under subsection 6(1) of the ITAA 1936?
Detailed Reasoning
Subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that a person is an 'Australian resident' if that person is a resident of Australia for the purposes of the ITAA 1936.
Subsection 995-1(1) of the ITAA 1997 defines 'person' to include a company.
Subsection 6(1) of the ITAA 1936 defines 'resident or a resident of Australia' to mean:
....
(b) a company which is incorporated in Australia, or which, not being incorporated in Australia, carries on business in Australia, and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia.
As AusCo was incorporated in Australia on XX XX 20XX, it is a resident of Australia as of this date. Therefore, it is not necessary to consider the other elements of the definition of 'resident or resident of Australia' in subsection 6(1) of the ITAA 1936.