Many Chinese who have immigrated to Australia often receive overseas remittances due to their financial needs for life and home ownership. However, due to China's domestic foreign exchange limit of 5 US dollars, most of these remittances come from relatives, friends, or remittance companies. People usually think that these remittances are not worthy of special attention.

However, since the beginning of last year, the Australian Taxation Office began to inspect overseas remittance projects on a large scale.If a taxpayer has received overseas remittances in the past few years but has not filed tax returns, they will receiveAustraliaThe tax bureau’s notice requires taxpayers to give a reasonable explanation within 28 days.If a reasonable explanation is not given within the prescribed time limit, these remittances will be recognized as the taxpayer’s personal income, and will be required to make up the tax, interest penalties for delayed tax payment and dereliction of duty penalties for incorrect tax payment.

So, when you receive a notice from the tax bureau requesting an explanation of overseas remittances, how should you respond? Here, according to the different classifications of overseas remitters, now give some professional opinions for reference. The following documents are related to taxation. Materials usually required by the bureau:

XNUMX. When your overseas remittance is directly remitted by relatives

If the remittance you received was directly sent to you by your relatives, you need to prepare the following materials:

1. The bank statement of the sender.It can clearly show that the money is sent from your relatives account, and the time and amount are consistent with the time and amount of the money you received;

2. Proof of kinship and notarized copy with English translation.If it is a parent's remittance, then the household register plus the notarized translation of the household register is enough; in other cases, it needs to be issued by the government agency where the relative is located, and the notarized translation shall be issued by the notary office;

3. Personal statement from relatives.The content of the statement mainly states that the nature of the remittance is a gift or interest-free loan to you, signed by relatives, and a valid translation produced by an Australian translator with level 3 translation qualifications.

XNUMX. When your overseas remittance is made by your relatives through a foreign exchange company (such as:AustraliaAn Ying Currency Exchange Co., Ltd., etc.) when exporting

If the remittance you received was sent to you by a foreign exchange company by your relatives (recommendation is exchanged by a legally operated foreign exchange company approved by the Australian Federal Government), please prepare the following materials:

1. The bank statement of your relative.It can be clearly shown that the payment is sent from your relatives account to the account designated by the exchange company, and the time and amount are consistent with the time and amount of the exchange company receiving the remittance;

2. Obtain the exchange statement and other exchange materials from the exchange company, It can clearly show that the currency exchange company will send the money to your account in Australia within 48 hours after receiving the money;

3. Proof of kinship and notarized copy with English translation.If it is a parent's remittance, the account book plus the notarized translation of the account book is enough; in other cases, it needs to be issued by the government agency where the relative is located, and the notarized translation shall be issued by the notary office;

4. Personal statement from relatives.The content of the statement mainly states that the nature of the remittance is a gift or interest-free loan to you, signed by relatives, and a valid translation produced by an Australian translator with level 3 translation qualifications.

XNUMX. When your overseas remittance is remitted by your relatives through others (due to foreign exchange amount restrictions)

If the remittance you received was sent to you by your relatives, please prepare the following materials:

1. The bank statement of the sender.It can clearly show that the money is sent from another person's account, and the time and amount are consistent with the time and amount you received the money;

2. The bank statement of your relative.It can clearly show that the money is sent from your relative account to others, and the time and amount are consistent with the time and amount of the money received by others;

3. Proof of kinship and notarized copy with English translation.If it is a parent's remittance, the account book plus the notarized translation of the account book is enough; in other cases, it needs to be issued by the government agency where the relative is located, and the notarized translation shall be issued by the notary office;

4. Personal statement from relatives.The content of the statement mainly states that the nature of the remittance is a gift or interest-free loan to you, signed by relatives, and a valid translation produced by an Australian translator with level 3 translation qualifications.

XNUMX. Time of submission

The tax bureau will require you to submit the relevant documents within 28 days. If you think that time is not enough, you can call the tax bureau to apply for an extension to submit the documents. The tax bureau will generally approve and give you grace time for submission.If after an extension, you still think that there is not enough time, you can apply to the tax office for an extension again.

The above is the information that needs to be prepared in response to the tax bureau's inspection of overseas remittances. All the information is to be able to clearly prove that the source of the remittance you received is a gift or loan from your relatives and not your income from overseas investment. In view of the fact that some information will not be easy to prepare and obtain due to a long time, in order to protect your personal tax interests in Australia, we recommend that you collect and retain the above information in time after receiving the remittance for inspection by the tax bureau.

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