Private ruling: Residency for tax purposes
Date of advice: 4 January 2019
Published: April 2019
Ruling period: Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX
Date scheme commenced: 3 July 20XX

Ruling: Q1: Am I a resident of Country X for taxation purposes? | A1: No Reason for Decision Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines a resident for tax purposes as a person who is a resident of country X for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms ‘resident’ and ‘resident of country X’, 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 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 country X for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936 from 3 July 20XX.

Relevant facts and circumstances: You were born in Country X. You moved to Country Y You left country X with the intention to live overseas indefinitely You are employed in Country Y on a permanent basis Your partner joined you in Country Y Your partner was born in Country Z You have assets in country X (Bank Account, Investment property, motor vehicle) You have assets in country Y (Bank Account, Motor Vehicle, Tools, and personal household items) Your investment property in country X is rented on a long term lease and is not freely available to you for use. You are a member of the local golf club and the local Gym in country Y You have no social or sporting connection with country X. Your family ties in country X are your parents and brother. You would only return to country X on a short term holiday basis to visit family and inspect investment property. You have removed yourself from the Electoral role. You have informed Medicare that you have departed country X You cancelled your Private Health Insurance.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1). | Income Tax Assessment Act 1997 Section 768-910

Reasons for decision: Summary: Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines a resident for tax purposes as a person who is a resident of country X for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms ‘resident’ and ‘resident of country X’, 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 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 country X for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936 from 3 July 20XX. | Detailed Reasoning - This ruling applies for the following periods:: Period ending 30 June 20XX Period ending 30 June 20XX Period ending 30 June 20XX Period ending 30 June 20XX Period ending 30 June 20XX | Detailed Reasoning - The scheme commences on:: 3 July 20XX | Detailed Reasoning - Relevant facts and circumstances: You were born in Country X. You moved to Country Y You left country X with the intention to live overseas indefinitely You are employed in Country Y on a permanent basis Your partner joined you in Country Y Your partner was born in Country Z You have assets in country X (Bank Account, Investment property, motor vehicle) You have assets in country Y (Bank Account, Motor Vehicle, Tools, and personal household items) Your investment property in country X is rented on a long term lease and is not freely available to you for use. You are a member of the local golf club and the local Gym in country Y You have no social or sporting connection with country X. Your family ties in country X are your parents and brother. You would only return to country X on a short term holiday basis to visit family and inspect investment property. You have removed yourself from the Electoral role. You have informed Medicare that you have departed country X You cancelled your Private Health Insurance. | Detailed Reasoning - Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1). Income Tax Assessment Act 1997 Section 768-910