Financial help for Keith
Nov 11th 2009, 3:44 am
#1
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Joined: Apr 2008
Posts: 592
Financial help for Keith
Along long time ago, i was named in a will, my grandfather named me, so i am a man of wealth, but i hope i am never in the situation to accept this wealth as it would mean my grandparent would no longer be with us!
I have a question regarding this scenario, but also this converstaion i had last night with a friend who maybe coming out to the land of Oz.
If you are a permanent resident in Oz, so you pay all your tax here. You have some money in the bank in the UK, you recieve the interest every year after tax, because even though you are no longer a resident for tax in the UK, they will not pay your interest without any tax deduction. So your savings are in the UK, and you have recieved interest for the tax year after UK tax. You have been in Australia for the whole tax year, you have not worked at all in Australia for the whole tax year, you have not recieved one bit of income from Australia, so you have paid no tax in Australia. The only tax you have paid is the tax on your savings interest in the UK, worldwide income, i know.
Do you still have to submit a tax return in Australia, stating your only worldwide income is from your UK savings interest where you paid tax to the UK authorities, and paid no tax to Australia authorities. And even when you calculate your like for like tax if you had paid tax in Australia on your savings interest, it would have been less than the amount you have already paid in the UK at the applied exchange rate.
Do you still have to submit a tax return in Australia?
This was a beer discussion last night.
Thanks for any help Keith
I have a question regarding this scenario, but also this converstaion i had last night with a friend who maybe coming out to the land of Oz.
If you are a permanent resident in Oz, so you pay all your tax here. You have some money in the bank in the UK, you recieve the interest every year after tax, because even though you are no longer a resident for tax in the UK, they will not pay your interest without any tax deduction. So your savings are in the UK, and you have recieved interest for the tax year after UK tax. You have been in Australia for the whole tax year, you have not worked at all in Australia for the whole tax year, you have not recieved one bit of income from Australia, so you have paid no tax in Australia. The only tax you have paid is the tax on your savings interest in the UK, worldwide income, i know.
Do you still have to submit a tax return in Australia, stating your only worldwide income is from your UK savings interest where you paid tax to the UK authorities, and paid no tax to Australia authorities. And even when you calculate your like for like tax if you had paid tax in Australia on your savings interest, it would have been less than the amount you have already paid in the UK at the applied exchange rate.
Do you still have to submit a tax return in Australia?
This was a beer discussion last night.
Thanks for any help Keith
Nov 11th 2009, 3:51 am
#2
Home and Happy
Joined: Dec 2002
Location: Keep true friends and puppets close, trust no-one else...
Posts: 93,809
Re: Financial help for Keith
Along long time ago, i was named in a will, my grandfather named me, so i am a man of wealth, but i hope i am never in the situation to accept this wealth as it would mean my grandparent would no longer be with us!
I have a question regarding this scenario, but also this converstaion i had last night with a friend who maybe coming out to the land of Oz.
If you are a permanent resident in Oz, so you pay all your tax here. You have some money in the bank in the UK, you recieve the interest every year after tax, because even though you are no longer a resident for tax in the UK, they will not pay your interest without any tax deduction. So your savings are in the UK, and you have recieved interest for the tax year after UK tax. You have been in Australia for the whole tax year, you have not worked at all in Australia for the whole tax year, you have not recieved one bit of income from Australia, so you have paid no tax in Australia. The only tax you have paid is the tax on your savings interest in the UK, worldwide income, i know.
Do you still have to submit a tax return in Australia, stating your only worldwide income is from your UK savings interest where you paid tax to the UK authorities, and paid no tax to Australia authorities. And even when you calculate your like for like tax if you had paid tax in Australia on your savings interest, it would have been less than the amount you have already paid in the UK at the applied exchange rate.
Do you still have to submit a tax return in Australia?
This was a beer discussion last night.
Thanks for any help Keith
I have a question regarding this scenario, but also this converstaion i had last night with a friend who maybe coming out to the land of Oz.
If you are a permanent resident in Oz, so you pay all your tax here. You have some money in the bank in the UK, you recieve the interest every year after tax, because even though you are no longer a resident for tax in the UK, they will not pay your interest without any tax deduction. So your savings are in the UK, and you have recieved interest for the tax year after UK tax. You have been in Australia for the whole tax year, you have not worked at all in Australia for the whole tax year, you have not recieved one bit of income from Australia, so you have paid no tax in Australia. The only tax you have paid is the tax on your savings interest in the UK, worldwide income, i know.
Do you still have to submit a tax return in Australia, stating your only worldwide income is from your UK savings interest where you paid tax to the UK authorities, and paid no tax to Australia authorities. And even when you calculate your like for like tax if you had paid tax in Australia on your savings interest, it would have been less than the amount you have already paid in the UK at the applied exchange rate.
Do you still have to submit a tax return in Australia?
This was a beer discussion last night.
Thanks for any help Keith
Nov 11th 2009, 4:11 am
#3
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Thread Starter
Joined: Apr 2008
Posts: 592
Re: Financial help for Keith
Cheers me mate!
Ummmmm! I wasa wrong then, ummmmmmm, appologies are a needed i tinks! Did not think you would need to; like stay at home mums, just some savings in the UK. Ummmmmmm! Ball ache that for stay at home mums then? Well no ball ache for them as they are ball-less, but some kind of ache?
Keith
Ummmmm! I wasa wrong then, ummmmmmm, appologies are a needed i tinks! Did not think you would need to; like stay at home mums, just some savings in the UK. Ummmmmmm! Ball ache that for stay at home mums then? Well no ball ache for them as they are ball-less, but some kind of ache?
Keith
Nov 11th 2009, 4:23 am
#4
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Joined: Oct 2009
Location: Dubai
Posts: 1,291
Re: Financial help for Keith
The dreaded Tax Pack!
When we were in the UK, my husband had to fill this in as he had a measly $38 in savings in Oz. It was about 50 pages long. You have to do it though, as if you don't, you can be fined "hundreds of dollars" according to my mother-in-law...
When we were in the UK, my husband had to fill this in as he had a measly $38 in savings in Oz. It was about 50 pages long. You have to do it though, as if you don't, you can be fined "hundreds of dollars" according to my mother-in-law...
Nov 11th 2009, 4:26 am
#5
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Joined: Mar 2009
Posts: 1,289
Re: Financial help for Keith
If your world-wide income is below $6,000 you do not need to submit a tax return in Australia (unless the Commissioner specifically demands one - you'd get a letter in that case)..
And with regards to paying UK tax on bank interest when you are a tax resident of Australia: You can complete a form for your UK bank and they will then pay you the interest gross, i.e. without deducting any tax. The form is called R85 and you can download it here: www.hmrc.gov.uk/forms/r85.pdf
And with regards to paying UK tax on bank interest when you are a tax resident of Australia: You can complete a form for your UK bank and they will then pay you the interest gross, i.e. without deducting any tax. The form is called R85 and you can download it here: www.hmrc.gov.uk/forms/r85.pdf
Nov 11th 2009, 10:19 am
#7
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Joined: Apr 2004
Posts: 34,649
Re: Financial help for Keith
If you are not resident in Australia you do not have to do a tax return if you only have Australian bank interest.
Nov 12th 2009, 12:33 am
#9
Forum Regular
Joined: Jun 2009
Posts: 34
Re: Financial help for Keith
You have to take some expert advice on this one as it is not as clear cut as you might think and depends on your overall circumstances.
If for example you earned $50k in Australia from employment you would have to do a tax return. When doing the tax return you would have to decalre your foreign investment income EVEN if it was only $3k.
If for example you earned $50k in Australia from employment you would have to do a tax return. When doing the tax return you would have to decalre your foreign investment income EVEN if it was only $3k.
