Private ruling: Residency
Date of advice: 21 May 2019
Published: July 2019
Ruling period: Year ended 30 June 2019 | Year ended 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you a resident of Australia for income tax purposes in the years ending 30 June 2019 and 30 June 2020? | A1: No. Having considered your circumstances and the relevant factors, you are not a resident of Australia for income tax purposes under subsection 995-1(1) of the Income Tax Assessment Act 1997 and subsection 6(1) of the Income Tax Assessment Act 1936 as you have not met any of the tests required to be considered a resident of Australia.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a citizen of Country A. You were born in that country and have lived there continuously since birth. You reside in a main residence in Country A but also own another home nearby which you also occupy occasionally. You are single and have no children. Your family live near to your main residence in Country A. You are employed by Company A and work in their headquarters which is close to your home. In this role you are responsible for supervising the divestiture of Company A’s international businesses. Since 1 July 2018 this role and responsibility has required that you travel to Australia to facilitate the sale of Company A’s Australian business. When in Australia you stay at a local hotel. Your current business plans indicate that you will stay in Australia for more than 183 days in the 2019 financial year and up to 100 days in the 2020 financial year. You maintain strong family, social, employment and economic ties with Country A and you intend to return there once the sale of Company A’s Australian business is completed. You have no intention of taking up residence in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 subsection 995-1(1) Convention between the Government of Australia and the Government of Country A for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income