Private ruling: Residency
Date of advice: 18 March 2016
Published: May 2016
Ruling period: 1 July 20XX to 30 June 20ZZ.
Date scheme commenced: 1 July 20XX.

Ruling: Questions and answers: | Are you a resident of Australia for tax purposes from June 20YY to 30 June 20ZZ? | No.

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 were born in Country A. You are a Country A citizen. You have a spouse and children. Your spouse and children (your family) were also born in Country A and are also Country A citizens. You and your family came to Australia in 20WW from Country A. You and your spouse came to Australia on a permanent residence visa and became Australian citizens in 20YY. You and your spouse applied for permanent residency and citizenship of Australia because you wanted to become Australian. You work with an international company. You have had the same employer for over 20 years and travel extensively throughout the world to work on large scale projects. You and your family returned to Country A in June 20YY because of a 12 month assignment taken up with your employer. You have a 12 month lease on a rented residence in Country A where you are living with your family and you have enrolled your children in school in Country A. You are not sure how long you will remain in Country A but you are considering an offer from your employer to relocate permanently to Country A. You and your family might return to Australia to live but do not know when this will happen. From the beginning of July 20YY you have been a Country A resident for taxation purposes and you will pay tax in Country A for the period you are living and working there. Your assets in Country A are a family home, financial accounts, a number of motor vehicles and household effects. During the period you resided in Australia you were living in a rental property. When you left Australia you shipped some personal and household effects to Country A and sold or discarded the rest. You had your name removed from the Australian Electoral Roll when you left Australia. You have no family, property or other assets remaining in Australia. You will not spend more than a total of 183 days in Australia in any of the financial years between the period 1 July 20YY and 30 June 20ZZ. The Commonwealth superannuation test does not apply to you.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 995-1(1). | Income Tax Assessment Act 1936 Section 6(1).

Reasons for decision: Detailed Reasoning - Residency for taxation purposes: Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms 'resident' and 'resident of Australia', in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. The tests are: • the resides test, • the domicile test, • the 183 day test, and • the superannuation test. If any one of these tests is met, an individual will be a resident of Australia for taxation purposes. Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency during the period June 20YY to 30 June 20ZZ and will be a non-resident of Australia for taxation purposes during that time.