Private ruling: Residency - acquisition of shares
Date of advice: 7 May 2026
Published: 20 July 2026
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Did you acquire your shares in Company A at their market value on the date you became a resident of Australia for taxation purposes? | A1: Yes. Section 855-45 Income Tax Assessment Act 1997 (ITAA 1997) states that when you become an Australian resident for tax purposes (except when you are also a temporary resident after this occurs), you are taken to have acquired your non-TAP CGT assets at the same time, for their market value at that time. This is sometimes called 'deemed acquisition'. Therefore, in your case are taken to have acquired your shares in Company A (which are non-TAP assets) at their market value on the date you became a resident of Australia for taxation purposes in late 20XX.

Relevant facts and circumstances: In early 20XX, following a period where you were an Australian resident for taxation purposes, you moved to Country A with the intention to live there permanently. As such you were a non-resident for taxation purposes from this point in time. After moving to Country A, you sold everything in Australia and purchased a house in Country A, your banking and Share broking was moved to Country A, and you started to receive a Country A pension. After moving to Country A, and on advice from your Country A Accountant, you purchased some shares in a Country A company (Company A) which is jointly listed in Country A and Australia, whilst you were a non-resident of Australia for taxation purposes. Following the purchase of the Company A shares, you became an Australian resident for taxation purposes in late 20XX, following moving permanently back to Australia. As of the date you re-established your Australian tax residency, you owned X shares in Company A. You are now considering selling some of the Company A shares following you reestablishing your Australian tax residency in late 20XX. Company A holds ownership interests in property located in Country A and Country B and does not own any ownership interests in Australian property. Company A has a small office in Australia but does not own this premises. Company A only conducts activities in Country A under the control of the Country A Government.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 855-45