Tax dodging questions
Dec 27th 2009, 6:19 pm
#1
BE Enthusiast
Thread Starter
Joined: Apr 2008
Posts: 740
Tax dodging questions
1. When is the best time to land in Australia from tax point of view so that you don't have to declare your overseas income prior to Oz tax residency? July 1st?
2. Do migrants usually declare their overseas assets and investment income on Australian tax returns? What happens if you declare only after 5 or 10 years of migration when you are really sure that Oz is the permanent home?
3. When you are means-tested for benefits (just trying to fathom the downside here), do your overseas bank balances/assets also count?
2. Do migrants usually declare their overseas assets and investment income on Australian tax returns? What happens if you declare only after 5 or 10 years of migration when you are really sure that Oz is the permanent home?
3. When you are means-tested for benefits (just trying to fathom the downside here), do your overseas bank balances/assets also count?
Dec 27th 2009, 9:15 pm
#2
Guest
Posts: n/a
Re: Tax dodging questions
1. When is the best time to land in Australia from tax point of view so that you don't have to declare your overseas income prior to Oz tax residency? July 1st?
2. Do migrants usually declare their overseas assets and investment income on Australian tax returns? What happens if you declare only after 5 or 10 years of migration when you are really sure that Oz is the permanent home?
3. When you are means-tested for benefits (just trying to fathom the downside here), do your overseas bank balances/assets also count?
2. Do migrants usually declare their overseas assets and investment income on Australian tax returns? What happens if you declare only after 5 or 10 years of migration when you are really sure that Oz is the permanent home?
3. When you are means-tested for benefits (just trying to fathom the downside here), do your overseas bank balances/assets also count?
2: a) They should. b) back tax and penalties may be applied
3: Worldwide income and assets are counted for means tests.
Dec 27th 2009, 9:18 pm
#3
Lost in BE Cyberspace
Joined: Feb 2009
Location: UK
Posts: 14,284
Re: Tax dodging questions
1. When is the best time to land in Australia from tax point of view so that you don't have to declare your overseas income prior to Oz tax residency? July 1st?
2. Do migrants usually declare their overseas assets and investment income on Australian tax returns? What happens if you declare only after 5 or 10 years of migration when you are really sure that Oz is the permanent home?
3. When you are means-tested for benefits (just trying to fathom the downside here), do your overseas bank balances/assets also count?
2. Do migrants usually declare their overseas assets and investment income on Australian tax returns? What happens if you declare only after 5 or 10 years of migration when you are really sure that Oz is the permanent home?
3. When you are means-tested for benefits (just trying to fathom the downside here), do your overseas bank balances/assets also count?
I do not have a partiular knowledge of Australian tax law but some principles are much the same across tax systems so thought I would have a shot at your questions anyway.
1. I would not have expected to declare my overseas (meaning UK) income from prior to arriving in Australia no matter when I land. When I take up Australian residency I would expect my overseas income to come into play from that point onwards.
2. I am quite sure they do. It is called fraud otherwise.
3. Don't know about Australia, but for example in the UK it would count.
Dec 28th 2009, 11:15 am
#4
Forum Regular
Joined: May 2009
Posts: 60
Re: Tax dodging questions
Being an Australian resident and being an Australian resident for tax purposes is not necessarily the same thing. Check out the following link to the ATO website to see if you would classify as a resident for tax purposes.
http://www.ato.gov.au/individuals/co...tent/64131.htm
The difference is non residents are only taxed on income they earn in Australia. Residents are taxed on income earned anywhere in the world. You would therefore need to declare income earned overseas as soon as you are deemed a tax resident but you do not need to declare assets you hold (either in Australia or overseas) on an Australian tax return (unless you are in business.)
On an Australian tax return you can claim deductions for any expenses related to the income you declare e.g. work related expenses, investment expenses etc so make sure you keep all receipts from the beginning. Good Luck
http://www.ato.gov.au/individuals/co...tent/64131.htm
The difference is non residents are only taxed on income they earn in Australia. Residents are taxed on income earned anywhere in the world. You would therefore need to declare income earned overseas as soon as you are deemed a tax resident but you do not need to declare assets you hold (either in Australia or overseas) on an Australian tax return (unless you are in business.)
On an Australian tax return you can claim deductions for any expenses related to the income you declare e.g. work related expenses, investment expenses etc so make sure you keep all receipts from the beginning. Good Luck
Dec 28th 2009, 2:25 pm
#5
BE Enthusiast
Thread Starter
Joined: Apr 2008
Posts: 740
Re: Tax dodging questions
Thanks for clarifying this for me. Cheers!
