Private ruling: Residency for tax purposes
Date of advice: 20 September 2018
Published: November 2018
Ruling period: Period ending 30 June 2014 | Period ending 30 June 2015 | Period ending 30 June 2016 | Period ending 30 June 2017 | Period ending 30 June 2018
Date scheme commenced: 1 July 2013

Ruling: Q1: Were you a resident of Australia for taxation purposes from 1 July 2013 to 30 June 2018? | A1: No

Relevant facts and circumstances: You were born in country B You moved to Australia for your schooling which you completed in 199A You returned to country B permanently You returned to Australia in 199B for work You have established a property managing a company in country B. You also own a second company in country B. You have an Australian company to facilitate purchases for your country B companies. You have XX children from X relationships. Z of your children and your spouse live in Australia for schooling in rental accommodation. The children travel on education visas and your spouse travels on another visa. One of your children lives in country B with their parent and is currently schooled there. You own Y houses in country B, your family members live in X of these houses and you and your immediate family live in the Z house. The Y house is used for entertainment.

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 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. Accordingly you are not a resident of Australia for income tax purposes 1 July 2013 to 30 June 2018 under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.