Private ruling: Residency under double tax agreement
Date of advice: 15 April 2020
Published: June 2020
Ruling period: Year ended 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Were you a tax resident of Australia under Article 4 of the Double Tax Agreement between Australia and Country Y? | A1: No. Having considered your circumstances as a whole and the tiebreaker tests set out in the Double Tax Agreement between Australia and Country Y, it is accepted that you were not a resident of Australia under the Double tax Agreement on the basis that you had a permanent home in Country Y.

Relevant facts and circumstances: You are a permanent resident of Australia and a Country Z citizen. You work for a multinational company. You were relocated to Country Y on assignment. The assignment was originally expected to be two to three years. The assignment was reduced to less than 12 months. You travelled to Country Y for several weeks to set up your living arrangements. You leased a property to use as the family home while in Country Y. You returned to Australia for your family who then relocated with you to Country Y in early 20XX. The majority of your household furniture and personal items were shipped to Country Y with the remaining items kept in storage. You own a property in Australia which you were using as the family home prior to leaving for Country Y. The property was leased out when your family moved to Country Y and will not be available to you until after early 20XX. In late 20XX the length of your assignment was further shortened due to business demands in Australia and you were due to finish late 20XX. You terminated the lease on the Country Y property and paid the outstanding rent. You left Country Y in late 20XX. You were a tax resident of both Australia and Country Y under domestic law while you were in Country Y .

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income Tax Assessment Act 1997 Subsection 995-1(1) | International Tax Agreements Act 1953