Hi there,
My mother works on cruise liners as a beautian, she is paid in American dollars and is not taxed. Because of this as soon as she brings they money back to Australia she must declare it and pay tax on it.
I have been talking to her about investing in property and was wondering is there a way for her to invest in property in Austalia with her money by not bringing it into the country and therefore not having to pay income tax on it?
Would something like starting up a company in a tax free haven putting her money into that company and the company buying the property work?
Thanks for any advice
Sebastian
Why is she not taxed? whose flag does the ship fly?
Sebastian,
I think that it might work in limited circumstances. Look at the Foreign Investment Review Board website for details. There are restrictions on foreigners (the offshore company in your proposal) buying real estate in Aust.
TerryTerence McMahon
HomeWin
FinanceWhat about leaving the money overseas and borrowing it. The interest may then be claimable in Australia in the borrowings were used for investment purposes.
There are various rules regarding these matters so get advice from an offshore specialist.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
One more thing, each person can legally bring in $10,000 each time they enter the country without having to declare it.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It’s funny that they ask you if you are carrying cash/travellers cheques, but I didn’t think they asked you about your credit cards/debit cards.
Couldn’t you just use one of them to spend/withdraw the money whilst here?
Cheers
MelHi Sebastian,
My favourite hobby is how to get o/s income into Australia with minimal tax going to the ATO.
Terry is right about the 10K limit on each trip. I never come back to OZ alone. The problem is where to exchange the money and get a good price or where to buy OZ dollars before you come.
Also have you checked out the option of being declared a non taxable resident living o/s. If you do this make sure you have good medical insurance in case you get sick in OZ.
Mel is also right about credit cards. The exchange rate needs to be timed perfectly or you can lose a fair bit. Also some banks will report transactions that total more than 50K per month.
Also check out the option of buying gold certificates at USD and exchanging them at the Perth mint. My understanding is that there is a loop hole here, but I haven’t gone down this particular road myself.
Finally, a long term option (takes 1 year) depending on which country you buy in can be bringing in imported cars. You need to own the car for a year before bringing it into OZ. The loop hole is that you don’t actually have to live in the country you buy the car from. Your mum can buy the cars for family members if they want whilst o/s and then get the equivilant in AUD on her return.
Hi Mel,
What is also funny is that in most countries they ask you are you carrying drugs or weapons. In OZ it’s fruit and plants. Well it was before 9/11.C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Sebastian and all,
I am overseas and Im paid in US dollars as well. I am a non resident for Tax purposes and my job has been declared exempt from Australian Tax by the ATO[
]. If she hasnt already your Mother may want to find out if that really is the case with having to pay tax. 91 days continious foreign service has a bit to do with it I believe, but dont quote me. Like Terry said find an “Offshore specialist” but be prepared to shell out some coin for their services !C2 I love your hobby – dodging Tax [
] ! I have friends O/S here with me that are sending a Dodge Viper to Oz very soon. They are having a few problems, plus left hand drive throws a nice spanner in the works too. Gold here is very cheap too but Ive never looked into offloading any …any ideas ? Do you know what the figure is on funds(that are wired) that get flagged and must be notified to the Govt by the actual bank, I thought it was 5K ?J
“Success comes from having the proper aim as well as the right ammunition”
Hi J
It depends on the bank and the country. Lloyds who do same day transfers at about 30AUD a pop, has a 10K single transfer and 50K for the month. The trick is you can open multiple accounts and have that directed to one account to by pass this reporting.
Left Hand drive vehicles are being phased out as imports unless in the classic or veterans class. This is also under review.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Ahh I see, but does any of this reporting actually get used or is it just policy ?
The bank Im with does not charge anything for wire telex transfers and the limit is ~ 30K AUD(depending on the rate)
I dont know how long youve been O/S but the strength of this Aussie $ is really starting to P##S me off !
J
“Success comes from having the proper aim as well as the right ammunition”
Hi J,
I’ve been o/s for toooo long. Tooo many countries with strange languages. I’m surprised you get free transfers. I’ve known a few people who have been question on there source of o/s income by the ATO, not long after large transfers have been made. I don’t know the exact reporting proceedure, but believe it is compulsory. Is the 30AUD single transfer or per month? Depending on the time you spend o/s the rising dollar can have many benefits. This is mainly if you derive income from various countries. Your friends are sending a car to OZ and if they resell and send the money back then it’s good. High dollar, imports in, OZ dollars out.
BTW, what do you miss most from OZ? I miss the open speed limits of the NT. Some of these countries have 30Kmh speed limits om major roads.C2
“Is it true the more you owe the more you grow until the bank steps in?”Just a bit on the reporting side of things. Every overseas transaction is reported automatically and is monitored by a govt department called Austrac (www.austrac.gov.au). In addition, the banks can also report suspicious trasnactions separately. Domestically, every transaction over $10,000 must be reported. So if you cash $10,000 worth of travellors cheques, the institution must get your id and fill in a report. Avoiding this by doing multiple small transactions is an offence (known as structuring) against the Financial Reporting Transactions Act. The penalty is up to 5 years imprisionment!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Where does the maximum monthly figure of 50K come from? Lloyds bank imposes this one. Also is it structuring of travellers cheques, bank transfers or both?
C2
“Is it true the more you owe the more you grow until the bank steps in?”C2
I don’t know about the $50K/month one. maybe that is just a Lloyds bank policy. I think you could get into trouble is you try to do multiple transactions to avoid the FTRA reporting requirements whether cash or t/cs.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
C2 and be aware that these are Austrlain requirements, other countires have their own requirements, and I think Japan introduced something similar to Austrac a few years ago.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the replies everyone.
I think the solution may be a combination of methods. One of which is bringing $10K into the country when she comes back once per year.
Can anyone recommend an off shore specialist?
C2, What would be involved in being a non taxable resident living o/s?
OzpatinQ8, I have looked into the 91 day offshore clause in the Australian Tax guide, but the way I read it is that you will not have to pay tax to the ATO if you have more than 91 days foreign service, except if you are not taxed by the counrty that the income is derived in.
Terry, So would it not be possible to do a number of small depostits into the credit card? Something like 4 x $9000 USD over the course of a year? Would that be against the Financial Reporting Transactions Act?
This is getting interesting!! [
]Sebastian
the limit is AUD $10,000, so us$9000 would be over.
but you could deposit whatever amount overseas, and then withdraw it here from ATMs. That shouldn’t show up.
If you wanted to make several deposits in Australia less than $10,000 than that would be an offence against the FTR Act, but it 4 transactions is not something very large!
Do a search on google on ‘tax havens’.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi,
C2 – I just checked my transfer limit( per month) and its 30K Aud , but I can increase it to 100K Aud ! LOL – As if ! I bank with the National Bank of Kuwait (NBK) here: http://www.nbk.com/nbk/default.htm
Being in this part of the world has its pros and cons for sure, but I actually miss speed limits and sane Aussie drivers. The drivers here are crazy, lots of deaths daily as the roads are very straight and 6 lanes wide. Arabs in big american cars cause havoc ! But what I do miss the most ? Beer and pies !
Sebastian, I dont pay tax here or in Oz. I guess its because the locals here dont pay Income tax – only companies do ! I think the ATO is more concerned with double taxation and avoiding it. I have just changed accountants to KPMG(QLD) and have found them very good !
Terry, so it doesnt matter what amount I send home(from abroad) it all gets monitered ? Well thats easy !
Thanks for the info people !
Cheers
J
“Success comes from having the proper aim as well as the right ammunition”
Hi J,
Definitely meat pies. A bloody yanky mate of mind got me all excited when he said he bought some Australian pies from a discount shop here. Off I go. 2 Hrs and 100Klm later and what do I find? These strange oblong looking chicken and vegetable things, but they do have Australian beer, wine and TIM TAMS.
Sebastian,
If you go into the ATO they have a simple form for you to fill out, I haven’t done this. After a family dispute with the ATO that cost over 2M, I chose not to pay tax. I know I can’t get away with this for much longer but it was a conscientious objection at the time and I will face the repercussions later.
Terry,
Thanks again, I will be carefull. Also if you borrow money and you stop working in that country, they can ask you to refinance with another institution.C2
“Is it true the more you owe the more you grow until the bank/ATO steps in?”
]. If she hasnt already your Mother may want to find out if that really is the case with having to pay tax. 91 days continious foreign service has a bit to do with it I believe, but dont quote me. Like Terry said find an “Offshore specialist” but be prepared to shell out some coin for their services !
] ! I have friends O/S here with me that are sending a Dodge Viper to Oz very soon. They are having a few problems, plus left hand drive throws a nice spanner in the works too. Gold here is very cheap too but Ive never looked into offloading any …any ideas ? Do you know what the figure is on funds(that are wired) that get flagged and must be notified to the Govt by the actual bank, I thought it was 5K ?The topic ‘Bringing money into the country’ is closed to new replies.
