Private ruling: Capital gains tax
Date of advice: 30 September 2019
Published: November 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will any capital gain or loss you make on the disposal your shares be disregarded? | A1: Yes. It is accepted that the gain that you have received from the disposal of your shares is not taxable in Australia as you are not a resident of Australia for taxation purposes and your shares are not taxable real property. In order to have the withholding refunded to you, you will need to lodge an income tax return.

Relevant facts and circumstances: You are not an Australian resident for taxation purposes. You purchased shares in a company. The company merged with another company resulting in the sale of your shares. The sale of the shares resulted in a gain. You and your associates did not own more than 10% of the shares in the company. An amount was withheld from the sale and provided to the Australian Taxation Office as foreign resident capital gains withholding. You are requesting the amount be refunded to you.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 885-10 | Income Tax Assessment Act 1997 section 885-30