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1 Are you a resident of Country A for tax purposes from Date 3 to 30 June 20XX?

No Question 2 Is any part of the income you derived from your employment with Employer A included in your assessable income? Answer No Question 3 Is any part of the income you derived from your employment with Employer B included in your assessable income? Answer No This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: 1 July 20XX

You are a dual citizen of Country A and Country B. You are a resident of Country C for tax purposes. You were born in Country B. You moved back to Country A when you were an infant. On Date one, you commenced casual employment with Employer A. This employment is sporadic and consists primarily of marking papers after a contest, lecturing at training schools during school holidays if available and accompanying team delegations to international contests. In 20XX, you moved to Country D to attend university. On Date 2, you returned to Country A after completing your university studies. On Date 3, you left Country A and went to Country C to commence full-time employment. You commenced employment in Country C on Date 4 with Employer B. When you departed Country A, your intention was to try out your new position in Country C. You only intended to return to Country A if you did not enjoy the new position. In the same month you went to Country C, you informed Employer A of your relocation to Country C.

You continue to be employed by Employer A and undertake work for Employer A sporadically. When you attended in-person at the Employer A event the following month in Australia, you intended that it would be your final and only in-person involvement in a Country A Employer A event. You have provided details of several occasions where you undertook work for Employer A remotely from Country C. You hold an employment pass in Country C. This pass is dated Date 4. The pass is valid for several years, expiring on Date 6. It is renewable in periodic increments and you don't anticipate any difficulty having the pass renewed if required. Your visa is sponsored by your employer. You don't intend on applying for Country C residency at this stage. You may start to consider applying for permanent residency if you remain in Country C in several years' time. You entered Country C on an in-principal approval prior to having your residency card formally issued. Your employer is a Country C subsidiary of a Country E company. The employer reports to Country E 's company's office in City A, Country A.

On Date 7, you re-evaluated your employment and decided that it was acceptable and you would continue with it. After this point, you had no intention to return to Country A in the short to medium term. On Date 8, you passed the probation period for your employment. At the time of leaving Country A, you purchased a return ticket to return to Country A on Date 9 Ultimately, this ticket had a schedule change that was not suitable. You did not cancel the ticket until Date 10. You arrived in Australia on Date 11 and departed Australia on Date 12. You travelled via City B on both trips to visit your parents. You worked at your employer's City A office from Date 13 to Date 14. The duties you performed there were performed under your Country C employment contract. During late 20XX, you were visited by close friends from Country D. During and after these visits, you formed the firm intention to leave Country C and move nearer to them within the next few months to a year. After arriving in Country C on Date 3, you stayed in employer-provided temporary accommodation for several weeks.

You signed a long-term lease for an apartment in Country C. The lease commenced on Date 15. It is due to expire on Date 16. You and your landlord have signed a written agreement to extend your lease for several weeks. After that, you will either move to the lower floor of your current accommodation and renew the lease for a full 12 months or move elsewhere and lease for 12 months. On personal visits to Country A, you stay at your parents' house. The room is available for you to use and guests may also use it if they are visiting your parents. You have left most of your possessions and valuable documents at your parents' house in Country A. You have several Country A bank accounts which you use for international travel and purchases outside of Country D and Country C. You receive interest on your accounts in Country A, Country C and Country D. You have a superannuation account in Country A. You do not have any family in Country C Your parents live in City B and your sibling lives in Country F. You do not have a spouse. You have school friends in Country A but don't remain in regular contact with them, except when you return to Country A.

You have several friends across Country A you met through your activities with Employer A. However, you don't maintain regular contact with most of them. You don't have strong social connections in Country C. Your closest friends are those you made at university and they reside primarily in Country D. You maintain regular contact with them via social media. You have no sporting connections with Country A or Country C. You have not had your name removed from the Electoral Roll. You have not advised the Country A financial institutions you hold bank accounts with that you are not a Country A resident. You have not advised Medicare that you should be removed from their records. Your parents removed you from their private health insurance policy on Date 17. You lodged an income tax return for the income year ending 31 December 20XX in Country C. You lodged an income tax return for the income year ending 30 June 20XX as a resident of Country A for tax purposes. You have included a capital gain from the sale of your stocks in the 20XX income tax return.

When you travelled to Country A in 20XX, you indicated that you were a visitor on your incoming passenger cards. You did not complete any outgoing passenger cards. You have provided a list of trips you have taken during the income year ending 30 June 20XX. For all of the trips during the income year ending 30 June 20XX, you departed from and returned to Country C. You will travel to Country G and Country H from Date 18 to Date 19 with a friend from Country D. You have a trip to Country I booked for Date 20 to Date 21 to visit family. You have provided details of travel you have planned during the next few months. Going forward, you anticipate travelling to Continent A 2 to 3 times per year, Country A once a year for work, to Continent B several times per year. You have no intention to move back to Country A in the short to medium term but would like to return when you are significantly older. In the immediate future, you intend to remain in Country C. You would like to relocate closer to friends near Country D in the short to medium term. However, this is proving more challenging than expected.

You hold a Country A driver's licence. You have not converted it to a Country C licence as you don't drive in Country C. Your mailing address is your Country C address, with the exception of mail from Country A financial services. You are not a member on behalf of whom contributions are being made to the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS) or a spouse of such a person, or a child under 16 of such a person.

Income Tax Assessment Act 1997 section 6-20 Income Tax Assessment Act 1997 section 995-1 Income Tax Assessment Act 1936 subsection 6(1) International Tax Agreements Act 1953

Overview of the law 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', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: •                the resides test (also referred to as the ordinary concepts test) •                the domicile test •                the 183-day test, and •                the Commonwealth superannuation fund test. The resides test is the primary test for deciding the residency status of an individual. This test considers whether an individual resides in Australia according to the ordinary meaning of the word 'resides'. Where an individual does not reside in Australia according to ordinary concepts, they will still be an Australian resident if they meet the conditions of one of the other tests (the domicile test, 183-day test and Commonwealth superannuation fund test).

Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . We have considered the statutory tests listed above in relation to your situation as follows: The resides test The ordinary meaning of the word 'reside' has been expressed as 'to dwell permanently or for a considerable time, to have one's settled or usual abode, to live, in or at a particular place': See Commissioner of Taxation v Miller (1946) 73 CLR 93 at 99 per Latham CJ, citing Viscount Cave LC in Levene v Inland Revenue Commissioners [1928] AC 217 at 222, citing the Oxford English Dictionary. Likewise, the Macquarie Dictionary defines 'reside' as 'to dwell permanently or for a considerable time; have one's abode for a time'. The observations contained in the case of Hafza v Director-General of Social Security (1985) 6 FCR 444 are also important: Physical presence and intention will coincide for most of the time. But few people are always at home. Once a person has established a home in a particular place - even involuntarily: see Commissioners of Inland Revenue v Lysaght [1928] AC 234 at 248; and Keil v Keil

[1947] VLR 383 - a person does not necessarily cease to be resident there because he or she is physically absent. The test is whether the person has retained a continuity of association with the place - Levene v Inland Revenue Commissioners [1928] AC 217 at 225 and Judd v Judd (1957) 75 WN (NSW) 147 at 149 - together with an intention to return to that place and an attitude that that place remains "home": see Norman v Norman (No 3) (1969) 16 FLR 231 at 235... here the general concept is applicable, it is obvious that, as residence of a place in which a person is not physically present depends upon an intention to return and to continue to treat that place as "home", a change of intention may be decisive of the question whether residence in a particular place has been maintained. The Commissioner considers the following factors in relation to whether a taxpayer is a resident under the 'resides' test: •                period of physical presence in Australia •                intention or purpose of presence •                behaviour while in Australia •                family and business/employment ties •                maintenance and location of assets

•                social and living arrangements. It is important to note that no one single factor is decisive, and the weight given to each factor depends on each individual's circumstances. Because the resides test is about whether an individual resides in Australia, the factors focus on the individual's connection to Australia. Having a connection with another country, or being a resident of another country, does not diminish any connection to Australia. The ordinary meaning of reside does not require an individual to have a principle or usual place of residence in Australia. Application to your situation You are not a resident of Australia under the resides test for the period from Date 3 to 30 June 20XXbased on the following: •                period of physical presence in Australia - you have been physically present in Australia for only several days during the ruling period. During that time, you visited your family in City B. You travelled to Australia via City B so that you were able to visit your parents.

•                behaviour while in Australia - while in Australia, you worked for several weeks for Employer A and also visited your parents in City B. Your work for Employer A commenced in mid 20XX and is not addressed in this ruling for the income year ending 30 June 20XX. •                family and business/employment ties - your parents reside in Country A and keep a room in their house available for you to use at any time. Your employer has a head office in City A, which you may attend infrequently to perform work under your Country C employment contract. •                maintenance and location of assets - you have left most of your possessions and valuable documents at your parents' house in City B. •                social and living arrangements. - you don't maintain any sporting connections in Country A. Although you maintain some contact with friends in Country A, it is infrequent and you consider that your strongest social connections are with your university friends in Country D. Your employer has a head office in City A and you anticipate you will travel to City A in connection with your employment on an annual basis only for several weeks at a time.

You may still be an Australian resident if you meet the conditions of one of the other tests (the domicile test, 183-day test and Commonwealth superannuation fund test). You may still be an Australian resident if you meet the conditions of one of the other tests (the domicile test, 183-day test and Commonwealth superannuation fund test). Domicile test Under the domicile test, you are a resident of Australia if your domicile is in Australia unless the Commissioner is satisfied that your permanent place of abode is outside Australia. Domicile Whether your domicile is in Australia is determined by the Domicile Act 1982 and the common law rules on domicile. Your domicile is your domicile of origin (usually the domicile of your father at the time of your birth) unless you have a domicile of dependence or have acquired a domicile of choice elsewhere. To acquire a domicile of choice of a particular country you must be lawfully present there and hold the positive intention to make that country your home indefinitely. Your domicile continues until you acquire a different domicile. Whether your domicile has changed depends on an objective consideration of all relevant facts.

Application to your situation In your case, you were born in Country B and your domicile of origin is Country B. You immigrated to Australia when you were an infant and have dual citizenship of Australia and Country B. It is considered that you abandoned your domicile of origin in Country Band acquired a domicile of choice in Australia. You are entitled to reside in Australia permanently as you hold Australian citizenship. You are not entitled to reside in Country C indefinitely and while living in Country C, you only hold a work permit which is valid for several years. Therefore, your domicile is Australia. Permanent place of abode If you have an Australian domicile, you are an Australian resident unless the Commissioner is satisfied that your permanent place of abode is outside Australia. This is a question of fact to be determined in light of all the facts and circumstances of each case. 'Permanent' does not mean everlasting or forever, but it is to be distinguished from temporary or transitory.

The phrase 'permanent place of abode' calls for a consideration of the physical surroundings in which you live, extending to a town or country. It does not extend to more than one country, or a region of the world. The Full Federal Court in Harding v Commissioner of Taxation [2019] FCAFC 29 held at paragraphs 36 and 40 that key considerations in determining whether a taxpayer has their permanent place of abode outside Australia are: •                whether the taxpayer has definitely abandoned, in a permanent way, living in Australia •                whether the taxpayer is living in a town, city, region or country in a permanent way. The Commissioner considers the following factors relevant to whether a taxpayer's permanent place of abode is outside Australia: •                the intended and actual length of the taxpayer's stay in the overseas country •                whether the taxpayer intended to stay in the overseas country only temporarily and then to move on to another country or to return to Australia at some definite point in time

•                whether the taxpayer has established a home (in the sense of dwelling place; a house or other shelter that is the fixed residence of a person, a family, or a household), outside Australia •                whether any residence or place of abode exists in Australia or has been abandoned because of the overseas absence •                the duration and continuity of the taxpayer's presence in the overseas country •                the durability of association that the person has with a particular place in Australia, i.e. maintaining assets in Australia, informing government departments such as the Department of Social Security that he or she is leaving permanently and that family allowance payments should be stopped, place of education of the taxpayer's children, family ties and so on. As with the factors under the resides test, no one single factor is decisive, and the weight given to each factor depends on the individual circumstances. Application to your situation The Commissioner is satisfied that your permanent place of abode is outside Australia because:

•                You lease a furnished apartment in Country C where you have resided for the past several months. You will either renew this lease shortly or seek similar accommodation close to where you currently reside. •                You intend to stay in Country C for the short to medium term. You may return to Australia in the long term when you are much older. •                Your parents have removed you from their private health insurance cover. Therefore, you are not a resident of Australia under the domicile test. 183-day test Where a person is present in Australia for 183 days or more during the year of income the person will be a resident, unless the Commissioner is satisfied that both: •                the person's usual place of abode is outside Australia, and •                the person does not intend to take up residence in Australia. Application to your situation You have not been present in Australia for 183 days or more during the 20XX income year. Therefore, you are not a resident of Australia for the income year ending 30 June 20XX under this test. Superannuation test

An individual is a resident of Australia if they are either a member of the superannuation scheme established by deed under the Superannuation Act 1990 or an eligible employee for the purposes of the Superannuation Act 1976, or they are the spouse, or the child under 16 of such a person. Application to your situation You are not a member on behalf of whom contributions are being made to the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS) or a spouse of such a person, or a child under 16 of such a person. Therefore, you are not a resident under this test. Conclusion As you do not satisfy any of the four tests of residency, you are not a resident of Australia for income tax purposes for the period from Date 3 ended 30 June 20XX. Question 2 Summary No part of the income you derived from your employment with Employer A is included in your assessable income. Detailed reasoning Sections 4 and 5 of the International Tax Agreements Act 1953 (the Agreements Act) incorporate that Act with the ITAA 1936 and the ITAA 1997 and provide that the provisions of a double tax agreement have the force of law.

Taxation Ruling TR 2001/13 discusses the Commissioner's views about interpreting double tax agreements. Paragraph 104 provides that the OECD Model Tax Convention and Commentary will often need to be considered in interpreting double tax agreements. The Double Taxation Agreement between Australia and Country C is contained in Section X of the Agreements Act, being the Agreement between the Government of the Commonwealth of Australia and the Government of Country C for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (the DTA). Paragraph 1 of the relevant article of the DTA provides the following: 1.              Subject to this Article and to the other relevant articles, remuneration or other income derived by a resident of one of the Contracting States in respect of personal (including professional) services shall be subject to tax only in that Contracting State unless the services are performed or exercised in the other Contracting State. If the services are so performed or exercised such remuneration or other income as its derived therefrom shall be deemed to have a source in, and may be taxed in, that other contracting state.

Section 6-20 of the ITAA 1997 provides that an amount of ordinary income or statutory income is exempt income if it is made exempt from income tax by a provision of this Act or another Commonwealth law Application to your situation As your employment with Employer A was not exercised in Country A during the ruling period, the income from the employment will not be assessable in Country A. In accordance with section 6-20 of the ITAA 1997, the amounts will be exempt income in Country A as the provisions of the DTA have the force of law. Question 3 Summary No part of the income you derived from your employment with Employer B is included in your assessable income. Detailed reasoning As outlined in Question 2, income from employment exercised in the Contracting State where you are a resident shall be taxable only in that Contracting State unless it is exercised in another Contracting State. Application to your circumstances

As your employment with Employer B was not exercised in Country A during the ruling period, the income from the employment during the ruling period will not be assessable in Country A. In accordance with section 6-20 of the ITAA 1997, the amounts will be exempt income in Country A as the provisions of the DTA have the force of law.