Private ruling: Capital gains tax
Date of advice: 8 June 2022
Published: August 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the deferred capital gain made on the sale of Australian shares assessable in Australia? | A1: 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.

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