This is very important! How to deal with the Australian Taxation Office (ATO) overseas asset inventory
"Chinatown"-Official media of Chinese Australians
Australian Taxation Office (ATO)Activities have been launched to check the funds transferred overseas, and some friends who have received overseas remittances are unavoidable. In fact, don't be afraid, as long as you prepare in advance, it is basically fine.
The so-called overseas income includes overseas business income, employment income, pensions, annuity income, bank interest, dividends, royalties, rents, capital gains, and personal labor income.
The overseas income defined by ATO is as follows:
* Any overseas income, including income generated, derived or directly received from sources outside Australia
* Periodically received donations from currencies other than Australia
* Periodically received donations from sources other than currency other than currency
* The above benefits received are neither included in your taxable income, nor in fringe benefit.
You need to show the following overseas income in your tax return:
* Periodically receive currency or other forms of benefits from overseas relatives
* Business activities and investment income from overseas, even if it is tax-free in Australia
* If you are a temporary residence, income from overseas sources
* Obtain tax-free overseas employment income
After reading these definitions, you should feel relieved. The key words are: periodicity, income.
the following! Need attention need attention
You only have 28 days to respond to ATO's inquiries regarding the source and nature of funds. If you do not reply within 28 days, the tax bureau has the right to modify your personal income, thereby affecting the tax payable, resulting in tax arrears, late payment fees, penalty interest, etc. So it is very important.
If you move or travel abroad, you must pay attention to maintaining a smooth channel of information with ATO, and respond immediately.
But 28 days is still very short, so you should prepare in advance. The specific suggestions are as follows (for reference only):
1. Avoid periodic remittances (this is very simple)
2. If necessary, prepare a Chinese and English parental gift agreement, such as support for buying a house, etc., signed by both parties, because it is the income of your parents and taxed income. In theory, ATO can no longer double taxation
3. Prepare a Chinese and English parent’s loan agreement to buy a house. Find a template online. For example, the loan period is 15 years, no interest or low interest rate, extendable, etc., signed by both parties, and tell the tax bureau that this is a loan.
4. Parents’ income certificate, telling ATO the source of income and tax
5. Private ruling, it is not recommended, as a last resort, a way to remedy the situation, and still need to provide various supporting materials
Article reproduced from "China Australia International"
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