Quick tax query
#16
I understand that it is at the point where you are issued a Tax File Number in Australia that you become oficially TAX resident and then income form any assets worldwide are payable to the Australian government.
The best advice is to contact the ATO and get a definitive answer though.
The best advice is to contact the ATO and get a definitive answer though.
#17
Migration Agent










Joined: May 2002
Posts: 6,462
From: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)











The month in question is July, and I agree with what you say in your second paragraph - I think that I will be liable for this tax to be paid in Australia, which is a shame, as I was rather hoping I could pay it in the UK, as the burden would be much less there.
Looking through the rulings, it appears that a part month - i.e. the last day - counts as an entire month.
The waters are muddied a little by talk of adding a witholding tax schedule to the tax return for months that you weren't resident in Australia. I think that witholding tax should have been deducted by the bank at source when they made the payment on the 28th, as they had no idea that I would be arriving 2 days later, and then that schedule should be added to the relevant tax return. Unfortunately for me, the bank neglected to take the witholding tax so I can't create a schedule.
So now, am I liable to pay the missing witholding tax (10%) or the full tax at my marginal rate?
Stupid tax. And my accountant is of no help whatsoever!
S
Looking through the rulings, it appears that a part month - i.e. the last day - counts as an entire month.
The waters are muddied a little by talk of adding a witholding tax schedule to the tax return for months that you weren't resident in Australia. I think that witholding tax should have been deducted by the bank at source when they made the payment on the 28th, as they had no idea that I would be arriving 2 days later, and then that schedule should be added to the relevant tax return. Unfortunately for me, the bank neglected to take the witholding tax so I can't create a schedule.
So now, am I liable to pay the missing witholding tax (10%) or the full tax at my marginal rate?
Stupid tax. And my accountant is of no help whatsoever!
S

Best regards.
#18
Migration Agent










Joined: May 2002
Posts: 6,462
From: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)











Best regards.




