Rudi

Does anyone have any advice about financial stuff please.

My hubby has some money in the US. It is in shares and if we sell them it's considered a capital gain and we have to pay tax on it when we bring it into Australia.

We don't want to pay tax we want the money!!!!! Is there a legal way of avoiding tax? Can we take the money through the UK for example - put it into our UK bank account and then bring it here. We may get taxed in the UK but as we are not earning in the UK it would be at a lower rate......however, we are not resident in the UK so are unsure how we would be classed in terms of tax.

Another options could be to bring the money in through an offshore account (my Father in Law has one). Would this be possible?

Is there another way of doing it?

If anyone has any LEGAL advice about how we could do this it would be great!

Thanks

Rudi

JAJ

How much have the shares increased in value since you arrived in Australia? That's the capital gain.

Also:

- is your husband a U.S. citizen; and
- what is your visa status in Australia.

These may affect tax issues too.

Rudi

The shares have gone up lots since they were bought (in the last 4 years whilst we have been in Oz) . Some have been given to him as stock options by his previous company and some have been bought by him. He has a share trading account in the US.

Nope - he is not a US citizen.
We are Aussie citizens.

Thanks JAJ

Rudi

steve99

Can you not cash them in in the US, put them in whatever bank account you have over there, get a US Credit card if you dont already have one and then just use that credit card for your normal purchases over here in OZ, and just use online banking to pay the card off from the current account.

Rudi

I guess that would be possible in theory but we want to use the money to pay off a chunk of our mortgage - it's too much just to be sitting there waiting to be used on a month to month basis.

Any other ideas on how to bring the money over?

Thanks

Rudi

lonndongeek

Have you considered speaking to an accountant rather than seeking advice on an internet forum?

Cheers

Steve

Rudi

Having used this forum for several years, I had kind of got the impression that it was here to help people with issues and problems relating to Australia and how to solve those problems.

Yes, I have spoken to an accountant, and she said we have to pay the tax. However, that is the standard line - she is a local accountant and used to dealing with Australian issues, not with financial issues which stem from overseas investments.

I am sure I am not the only person here to have ever had overseas investments, and someone might have the answer I am seeking.

Rudi

GinaUK

Hi Rudi,

here are a few comments:

1. If you're Australian citizens than you pay tax in Australia on your worldwide income. It therefore makes no difference whether you bring the money in straight from the US, or through the UK or another off-shore account.

2. Get yourself a tax accountant who knows the Australian capital gains tax rules and the loop-holes inside out. This is unlikely to be your local friendly neighbourhood accountant - who probably only knows the basics for capital gains.

3. The reason why point 2 above is so important (and worth the money), is that yes, you will have to pay tax, but it can no doubt be minimised.

For example, in the UK, your husband could gift you some of the shares (so they are in your name). Then you could both sell some just before the end of one tax year and straight after the start of the next tax year. That way you'd get four lots of allowances. This would reduce the tax liability quite a bit. And that's just using the basics.

I don't know the Australian capital gains tax rules, but I bet there are all kinds of loopholes as well. So - invest in an accountant who *really* knows the Australian capital gains tax rules.

4. Accept that you will have to pay some tax.

Gina