"Chinatown"-Official media of Chinese Australians

Investing in Australia has entered a new round of upsurge since last year, and the depreciation of the Australian dollar has also made many investors who are holding a wait-and-see attitude act. Whether it is for immigration or investment, investors in Australia often receive overseas remittances due to various funding needs, so how to prevent this part of overseas remittances from being mistakenly regarded as overseas income? Investors need to do their homework.

The Australian dollar has depreciated all the way recently, and Australian immigration and home ownership have become the hearts of Chinese investors. Many investors living in Australia often receive overseas remittances due to various needs. It needs to be clear that the Australian Taxation Office will check this income. In order to prevent this part of funds from being taxed as overseas income, how should investors respond effectively?


The Australian Taxation Office inspects overseas remittances. If a taxpayer has received overseas remittances but has not filed tax returns in the past few years, it will receive a notice from the Australian Taxation Office, requiring the taxpayer 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 I receive a notice from the tax bureau requesting an explanation of overseas remittances, how should I respond?

According to the different classifications of overseas remittances, some professional opinions are given below for reference (the materials submitted are usually required by the tax bureau):

XNUMX. Overseas remittances are remitted directly by relatives
If the remittance you received was directly sent to you by your relatives, you need to prepare the following materials:

1. Remitter's bank statement

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. Family relationship certificate 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 declaration 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. Overseas remittances are remitted by relatives through exchange companies
If the remittance you received was sent to you by a foreign exchange company by your relatives (it is recommended that a legally operated foreign exchange company approved by the Australian Federal Government exchanges foreign currency), please prepare the following materials:
640-441
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. Ask the exchange company for exchange statements and other exchange materials.

It can clearly show that the currency exchange company will remit the money to your account in Australia within 48 hours after receiving the remittance;

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. Overseas remittances are remitted by relatives through others
If the remittance you received was sent to you by your relatives, please prepare the following materials: 
640-439

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.

In addition, the tax bureau will require the relevant documents to be submitted within 28 days. If you think that the 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 you still think that the time is not enough after an extension, you can apply to the tax bureau for an extension again.

The article is reproduced from "CAM China Australia Investment"

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