Private ruling: Residency
Date of advice: 17 June 2020
Published: August 2020
Ruling period: Year ending 30 June 20XX | 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 resident of Australia for income tax purposes from mid 20XX? | A1: No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au

Relevant facts and circumstances: You were born and are a citizen of Australia. Prior to 20XX, you were the owner of an Australian business. In 20XX, you commenced building foreign business in Country A. You invested in this venture financially at that time. You created a company. This company did not grow to a sufficient scale to enable you to permanently move to Country A. You established and invested in another business in 20XX. This business was based in Country A. You are the company president. You formed your intention to permanently reside in Country A in 20XX. You were unable to move permanently to Country A until early 20XX as the business was not established enough or at a sufficient size to enable you to do so. By the end of 20XX, the business had generated enough income to require you to pay tax in Country A. You lodged income tax returns for both the 20XX and 20XX income years You relocated to Country A on an unlimited entry visa. This visa is not employer sponsored. In late 20XX you commenced selling your Australian business. The business sold early 20XX. Proceeds from the sale were split. You received initial payment early 20XX and received the final payment in mid 20XX. According to travel records, you spent over 183 days in Australia in the 20XX income year and less than 183 days in Australia in the 20XX and 20XX income years. You have advised us that there was a requirement for you to return to Australia in the months following the sale of your business in order to tidy up loose ends, attend meetings, and perform a general hand-over. You had your name removed from the electoral role prior to the 20XX federal election. You have held apartment leases jointly with other parties in the Country A since 20XX. Prior to departure, you stayed in Property A owned by your discretionary trust This apartment has been rented since mid 20XX and will be kept as an investment. The property is currently mortgaged and managed by the building managers You sold all your motor vehicles in 20XX. Apart from the above Property A, you hold two other investment properties in the same state. Property B which has been rented for the past 10 years, and Property C which has been rented since 20XX. Prior to this time the property acted as your business premises. It is now a residential property. You retained your Australian bank account as this is attached to your mortgage. You are intending on winding up your Australian companies and trusts once the tax obligations have been met. You hold a 50% interest in another Australian business which is currently being negotiated for sale. You retained your furniture for the purpose of including this with the property when leased. You have moved most of your personal effects to Country A. A small number of items remain at your parent's home in Australia. You have no Australian income apart from rental income. You have not advised your banks of your departure as you are waiting on the outcome of this ruling. You have acquired a car, furniture and bank account in Country A. You have no dependants. You have no professional, social or sporting connections with Australia apart from the business transactions in progress discussed above. You have joined a gym in Country A, hold a social club card and drivers' licence. You have no spouse. You do not hold any CSS or PSS superannuation.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 6