$100,000 investment & tax on interest?
#16
Migration Agent
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Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
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Re: $100,000 investment & tax on interest?
Nope, no double tax, as you get credit for the tax already suffered in Australia.
Best regards.
Best regards.
Originally posted by pudnut
Thanks for that Alan, you've made my day!!
so I get to pay double tax, YIPPY!!
Thanks for that Alan, you've made my day!!
so I get to pay double tax, YIPPY!!
#17
Banned
Joined: Dec 2003
Posts: 150
Re: $100,000 investment & tax on interest?
Originally posted by Alan Collett
Sorry to be the bearer of bad tidings, but depending on your UK personal tax position you may also have to pay tax on this interest in the UK.
Example: assume the interest is A$2,000 (gross), which equates to about £850.
If you are paying tax in the UK at 22% your liability on this interest income is £850 x 22%, or £187. You have already suffered 10% tax (£85), so there is a balance of £102 to pay to the Inland Revenue.
Best regards.
Sorry to be the bearer of bad tidings, but depending on your UK personal tax position you may also have to pay tax on this interest in the UK.
Example: assume the interest is A$2,000 (gross), which equates to about £850.
If you are paying tax in the UK at 22% your liability on this interest income is £850 x 22%, or £187. You have already suffered 10% tax (£85), so there is a balance of £102 to pay to the Inland Revenue.
Best regards.
#18
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Re: $100,000 investment & tax on interest?
If you are UK resident and domiciled (as most who live in the UK are), your worldwide income is assessable.
Best regards.
Best regards.
Originally posted by jumbo
This cannot be right if, as a UK taxpayer you are taxed on UK income only, the Oz component is irrelevant.
This cannot be right if, as a UK taxpayer you are taxed on UK income only, the Oz component is irrelevant.
#19
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Joined: Dec 2003
Posts: 150
Re: $100,000 investment & tax on interest?
Originally posted by Alan Collett
If you are UK resident and domiciled (as most who live in the UK are), your worldwide income is assessable.
Best regards.
If you are UK resident and domiciled (as most who live in the UK are), your worldwide income is assessable.
Best regards.
If this is the case what is the point of investing in offshore accounts (Jersey , Isle of Man etc) to avoid tax?
Regards
#20
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Re: $100,000 investment & tax on interest?
Possibly the deferral of tax (but not avoidance - unless you are non-UK domiciled, but that's another issue), and in so doing obtaining a slightly higher effective rate of interest by obtaining interest on the tax element until it has to be paid over to the Inland Revenue.
Best regards.
Best regards.
Originally posted by jumbo
If this is the case what is the point of investing in offshore accounts (Jersey , Isle of Man etc) to avoid tax?
Regards
If this is the case what is the point of investing in offshore accounts (Jersey , Isle of Man etc) to avoid tax?
Regards
#21
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Joined: Dec 2003
Posts: 150
OK but how would IR be aware of an investment in OZ. Or conversley if resident in Oz how would ATO know of UL investments?
Regards
Regards
#22
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What are you advocating ...? I'm not going to enter into a discussion that alludes to avoiding your tax responsibilities.
Best regards.
Best regards.
Originally posted by jumbo
OK but how would IR be aware of an investment in OZ. Or conversley if resident in Oz how would ATO know of UL investments?
Regards
OK but how would IR be aware of an investment in OZ. Or conversley if resident in Oz how would ATO know of UL investments?
Regards
#23
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Joined: Dec 2003
Posts: 150
Nothing is being advocated but ATO surely have penalties to deter people from non-declaration otherwise everyone would be involved to a greater or lesser degree.
Regards
Regards
#24
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Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
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Yes, they do ... and the possibility of action in the Courts if needs be ... see also:
http://www.ato.gov.au/corporate/cont...tent/34538.htm
Best regards.
http://www.ato.gov.au/corporate/cont...tent/34538.htm
Best regards.
Originally posted by jumbo
Nothing is being advocated but ATO surely have penalties to deter people from non-declaration otherwise everyone would be involved to a greater or lesser degree.
Regards
Nothing is being advocated but ATO surely have penalties to deter people from non-declaration otherwise everyone would be involved to a greater or lesser degree.
Regards