Private ruling: Residency
Date of advice: 29 June 2022
Published: October 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a temporary resident? | A1: Yes. Based on the information provided to the Commissioner, you are a temporary resident under the Income Tax Assessment Act 1997 (ITAA 1997). You meet the requirements within the meaning of section 995-1of the ITAA 1997 as you hold the temporary special category visa and meet the health and character requirements. | Q2: Is the capital gain derived from the sale of shares in XXXX disregarded pursuant to Section 768-915 of the ITAA 1997? | A2: Yes. Section 768-915 of the ITAA 1997 applies if you are a temporary resident so that a capital gain or capital loss you make from a CGT event is disregarded where the CGT event happens in relation to a CGT asset that is not taxable Australian property. Based on the information provided to the commissioner as a temporary visa holder and a temporary resident of Australia, your capital gain derived from the sale of shares in XXXX is disregarded pursuant to Section 768-915 of the ITAA 1997.

Relevant facts and circumstances: You arrived in Australia with your family a number of years ago. You and your spouse are citizens of Country Y. You and your spouse have been tax residents of Australia since your arrival in Australia. You and your spouse have a temporary visa. You were granted Options to acquire XXXX shares in XXXXX under an employee share scheme ("ESS"). The ESS was a plan eligible for the start-up reduction in Section 83A-33 of the ITAA 1997. In the 20XX income year, you exercised the Options and acquired XXXX shares in XXXX for their exercise price of $XX.XX per share. You transferred the shares to a Custodian under a bare trust arrangement. This transfer of the shares to the Custodian was covered by a Class Ruling and the shares were then held by the Custodian under the Custodian Deed referred to in the Class Ruling. The shares are currently held by the Custodian on your behalf. Your interest in XXXX is less than 0.5% of the issued capital of the company; and you (through the Custodian) have disposed of the above shares to an unrelated party and derived a capital gain.