Just be careful of the Man

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pipoz4444
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Just be careful of the Man

Post by pipoz4444 » June 22, 2019, 10:58 am

For those to who this might apply, just be very careful if you live or reside overseas, but "maintain assets in" or "keep ties back to" your home Country. T Men in western world countries are on the chase of whatever tax money they can pull in, from those who work either full or part time, abroad. Its been a trend for several years now. This is just another recent court decision (in Australia), in a long line of determining what is your country of Residency or Place of Abode for taxation purpose.

PS. There is a new law coming into force in Australia on 01 July 2019, partly related to this issue. PM me if you wish to ask what it is. I am not a Taxation Accountant, but my .............sure is.

https://www.afr.com/news/policy/tax/you ... 620-p51zm7

"You can no longer be a tax 'resident of nowhere" :confused: =;

An Australian aircraft mechanic has lost a bid to avoid domestic tax residency despite spending only 50 days at home, in a ruling that confirms individuals must establish permanent ties to one country to be outside the ATO's reach.

Tax watchers say the Administrative Appeals Tribunal case is the latest to highlight deficiencies in residency rules, despite long-standing calls for change.

Former Qantas employee Alexander Handsley asked the tribunal to consider whether he was an Australia resident for tax purposes, arguing he had taken up a place of abode outside the country. He worked for a period for Vietnam-based Jetstar Pacific Airways on a contract arranged through an agency based in the Isle of Man.

In the 2013 income year, Mr Handsley said he spent 21 days in his new home country of the Philippines, as well as 43 days with his partner in Vietnam, 22 days in Singapore and made eight visits to Malaysia, totalling 127 days.

Divorced from his Australian wife, he had no motor vehicle or home in Australia, leaving only local bank and superannuation accounts.

The tribunal found that while Mr Handsley had done enough to break Australian residency ties, he had not changed his residency to another place outside of Australia or made a permanent home overseas.

In February, the Federal Court ruled the tax residency of an Australian expat could not be determined by the fact he lived in a serviced apartment in Bahrain.

That case considered whether the temporary apartment differed from a permanent home for tax purposes for Glenn Gerald Harding, with the decision noting that a series of temporary places of abode in a town or region could suggest a taxpayer had permanent ties there.

pipoz4444



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GT93
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Re: Just be careful of the Man

Post by GT93 » June 22, 2019, 11:09 am

I suspect the Australian public will like this decision. If an Aussie wants to escape from being an Australian tax resident he can't just become a resident of nowhere.

Being an Australian tax resident presumably means his world wide income is subject to income tax in Australia.

pipoz4444
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Re: Just be careful of the Man

Post by pipoz4444 » June 22, 2019, 11:27 am

GT93 wrote:
June 22, 2019, 11:09 am
I suspect the Australian public will like this decision. If an Aussie wants to escape from being an Australian tax resident he can't just become a resident of nowhere.

Being an Australian tax resident presumably means his world wide income is subject to income tax in Australia.
Its a bit complicated, as there appears to be four primary tests, which the ATO relies on determining whether an individual is a Resident, for Tax Purposes, in Austrlaia. These four tests for determining Residency are,
1.The Resides test
2.The Domicile and Permanent Place of Abode test
3.The 183-day test
4.The Commonwealth Superannuation Fund test

I am also told there are other factors which they specifically consider, related to, (1) what assets you maintain or keep in Australia, (2) what Monies if any you transfer back to Australia, (3) specifically if you purchase any property in Australia and (4) whether you use an Australian Address for any purpose, all when you are working or residing overseas. That these factors can put you at Risk with the ATO.

You really need to know or speak to someone who works for the ATO or is very close to them, to know how the ATO might view your individual situation, if your TFN comes up for review

pipoz4444

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