Any Tax Agents willing to give advice ?
Jul 15th 2013, 6:37 am
#1
Forum Regular
Thread Starter
Joined: Jan 2010
Posts: 97
Any Tax Agents willing to give advice ?
My 30 year old daughter has been living in the UK for the past 6 years working and more recently studying. She has $ 30 000 invested in a term deposit which is accruing interest. She has recently been advised that she must submit a tax return but has found the on line form and questions very confusing eg. she doesn't know whether she is still classified as an Australian citizen or a overseas one.
Questions 1) Would she be penilised if she doesn't submit a tax return but wait until she returns to Oz in about 3 years ? Would she accure penalties ? 2) When are you classified as an overseas citizen eg how long have to to live overseas ?
Any advice would be gratefully accepted.
I like tea
Questions 1) Would she be penilised if she doesn't submit a tax return but wait until she returns to Oz in about 3 years ? Would she accure penalties ? 2) When are you classified as an overseas citizen eg how long have to to live overseas ?
Any advice would be gratefully accepted.
I like tea
Jul 15th 2013, 7:37 am
#2
Concierge
Joined: May 2006
Location: ex ex-pat, in Taunton
Posts: 27,216
Re: Any Tax Agents willing to give advice ?
My 30 year old daughter has been living in the UK for the past 6 years working and more recently studying. She has $ 30 000 invested in a term deposit which is accruing interest. She has recently been advised that she must submit a tax return but has found the on line form and questions very confusing eg. she doesn't know whether she is still classified as an Australian citizen or a overseas one.
Questions 1) Would she be penilised if she doesn't submit a tax return but wait until she returns to Oz in about 3 years ? Would she accure penalties ? 2) When are you classified as an overseas citizen eg how long have to to live overseas ?
Any advice would be gratefully accepted.
I like tea
Questions 1) Would she be penilised if she doesn't submit a tax return but wait until she returns to Oz in about 3 years ? Would she accure penalties ? 2) When are you classified as an overseas citizen eg how long have to to live overseas ?
Any advice would be gratefully accepted.
I like tea
Jul 15th 2013, 7:49 am
#3
Forum Regular
Thread Starter
Joined: Jan 2010
Posts: 97
Re: Any Tax Agents willing to give advice ?
Thank you for your reply. My daughter is an Australian citizen with dual nationality.
Jul 15th 2013, 7:55 am
#4
Lost in BE Cyberspace
Joined: Feb 2009
Location: UK
Posts: 14,284
Re: Any Tax Agents willing to give advice ?
My 30 year old daughter has been living in the UK for the past 6 years working and more recently studying. She has $ 30 000 invested in a term deposit which is accruing interest. She has recently been advised that she must submit a tax return but has found the on line form and questions very confusing eg. she doesn't know whether she is still classified as an Australian citizen or a overseas one.
Questions 1) Would she be penilised if she doesn't submit a tax return but wait until she returns to Oz in about 3 years ? Would she accure penalties ? 2) When are you classified as an overseas citizen eg how long have to to live overseas ?
Any advice would be gratefully accepted.
I like tea
Questions 1) Would she be penilised if she doesn't submit a tax return but wait until she returns to Oz in about 3 years ? Would she accure penalties ? 2) When are you classified as an overseas citizen eg how long have to to live overseas ?
Any advice would be gratefully accepted.
I like tea
Jul 20th 2013, 1:42 pm
#5
Forum Regular
Joined: Nov 2005
Posts: 158
Re: Any Tax Agents willing to give advice ?
I presume the term deposit is in Australia. If so, then if she has notified the banks that she has an overseas address then they will have automatically deducted withholding tax of 10% - this will be a final tax and given that 1) she is not resident for Australian tax purposes (likely after 6 years in the UK) and 2) she has no other Australian income, then she will have no requirement to lodge an Australian tax return. If she hasn't notified an overseas address (and has, for example, used your address) then she needs to notify the banks as soon as possible and you should contact a tax agent to make any outstanding payments.
She should also include the interest income in her UK tax return, and claim an offset for the 10% withholding tax paid, so there is no double taxation.
She should also include the interest income in her UK tax return, and claim an offset for the 10% withholding tax paid, so there is no double taxation.
Jul 22nd 2013, 7:36 am
#6
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Any Tax Agents willing to give advice ?
I presume the term deposit is in Australia. If so, then if she has notified the banks that she has an overseas address then they will have automatically deducted withholding tax of 10% - this will be a final tax and given that 1) she is not resident for Australian tax purposes (likely after 6 years in the UK) and 2) she has no other Australian income, then she will have no requirement to lodge an Australian tax return. If she hasn't notified an overseas address (and has, for example, used your address) then she needs to notify the banks as soon as possible and you should contact a tax agent to make any outstanding payments.
She should also include the interest income in her UK tax return, and claim an offset for the 10% withholding tax paid, so there is no double taxation.
She should also include the interest income in her UK tax return, and claim an offset for the 10% withholding tax paid, so there is no double taxation.
