Private ruling: Residency of Australia for taxation purposes
Date of advice: 20 May 2019
Published: July 2019
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the income derived in Country Y and country Z assessable in Australia? | A1: Yes .

Relevant facts and circumstances: You are a resident of Australia for taxation purposes. You are an Australian government employee. You commenced a short term contract in Country Y with a client in mth/20XX which was extended to mth/20XX. You worked in Country Y during this contract from a home office in a rented house in Country Y and from an office supplied by your client. You have not paid tax in Country Y on the income derived in country Y. In mth/20XX you commenced a contract with the Country Z Government. The Country Z government paid all expenses. You did not pay tax on this income in Country Z as Country Z does not have income tax. You have not declared any of this income in your Australian tax returns.

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

Reasons for decision: Summary: Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. As a resident of Australia for taxation purposes you are required to declare your worldwide income from both Country Y and Country Z in your Australian tax returns. You are required to amend the relevant tax returns to include this income.