1 Did you cease to be an Australian resident for tax purposes on XX August 20XX for the purposes of section 6 of the Income Tax Assessment Act 1936 (ITAA 1936)?
1 Yes Question 2 Did you make a choice to disregard making a capital gain or loss from all CGT assets when you ceased your Australian residency for the purposes of section 104-165 of the Income Tax Assessment Act 1997 (ITAA 1997)? Answer 2 Yes Question 3 Will the exercise of the options in Company A be disregarded for the purposes of section 134-1 of the ITAA 1997? Answer 3 Yes Question 4 Will any capital gain or loss made from the disposal of shares acquired from the options granted by Company A be disregarded when you are a non-resident for the purposes of section 855-10 of the ITAA 1997? Answer 4 Yes This ruling applies for the following periods : 30 June 20XX 30 June 20XX 30 June 20XX 30 June 20XX 30 June 20XX The scheme commenced on: 1 July 20XX
You migrated from Foreign Country A to Australia. You are a dual citizen of Foreign Country A and Australia. On XX August 20XX, you, and your family relocated to Foreign Country B. You owed a property in Australia, which was sold in August 20XX. Your household and personal effects were shipped to Foreign Country B on XX July 20XX. You do not own any other property in Australia and do not have accommodation available to you in Australia. You sold your Australian motor vehicles on XX August 20XX. You ceased employment with Company A in June 20XX, while being on parental leave. You have bank accounts (checking, savings and foreign currency term deposits) still open in your absence. You registered as an Overseas Elector with the Australian Electoral Roll. You have advised Medicare of your overseas relocation. You have ceased memberships when you left Australia. You have suspended your private health insurance in Australia. You have Superannuation in Australia. Your Circumstances in Foreign Country B You have permission to stay in Foreign Country B under the Immigration Rules which is valid until XX February 20XX with a renewal option for X years.
You relocated to the Foreign Country B to be closer to your father in-law who was experiencing a serious health condition. You have taken employment with a foreign employer, since April 20XX. You have a Foreign Country B bank account. You purchased a motor vehicle in Foreign Country B. On XX May 20XX, you have settled and moved into your residence in Foreign Country B. You joined the Local Library in September 20XX. You joined the Leisure Centre in January 20XX. Your children have commenced school since XX September 20XX. Your return to Australia Following your departure on XX August 20XX you returned to Australia on XX September 20XX and left Australia on XX September 20XX. You have not returned to Australia following your departure in September 20XX. You do not intend to return to Australia to live in the foreseeable future. Options in Company A During your employ with Company A you participated in the 20XX Employee Start Up Share Option Plan (The plan). The plan qualified for the 'Start-Up' Employee Share Scheme Concession under the ITAA 1997.
Company A provided you with a total of XX options to purchase shares under the plan. All options under the plan have fully vested as at XX July 20XX. You exercised these options in July 20XX following ceasing Australian residency. You have not yet sold any of the shares obtained from the exercise of the options. You intend to sell the shares while you are a non-resident of Australia.
Income Tax Assessment Act 1936 subsection 6(1) Income Tax Assessment Act 1997 section 6-5 Income Tax Assessment Act 1997 section 104-160 Income Tax Assessment Act 1997 section 104-165 Income Tax Assessment Act 1997 section 134-1 Income Tax Assessment Act 1997 section 855-10 Income Tax Assessment Act 1997 section 855-15 Income Tax Assessment Act 1997 section 995-1 Does IVA apply to this private ruling? Part IVA of the Income Tax Assessment Act 1936 contains anti-avoidance rules that can apply in certain circumstances where you or another taxpayer obtains a tax benefit, imputation benefit or diverted profits tax benefit in connection with an arrangement. If Part IVA applies, the tax benefit or imputation benefit can be cancelled (for example, by disallowing a deduction that was otherwise all