Hi
I need some help with few things-
IF we have some fixed deposits in another country and we have paid tax there on the profit. Do I have to declare the amount and pay tax in Australia as well.
If my parents want to gift me money how much they can gift me which will not attract tax.
can my spouse gift me money which will not attract tax.
If we are selling an asset in another country the profit earned there so I have pay tax here in australia.
pay 150 bux and ask an accountant
If you are an Australian resident for tax purposes you need to declare all income including overseas.
Questions 1 + 4 - Yes - disclose the income on your tax return in AUD, but you should get a foreign tax credit for tax amounts paid overseas. So if the tax rate is higher in Aust than the country you paid tax in, you will probably have to make up the difference.
Questions 2 + 3 - to be honest it sounds like you are doing something dodgy to avoid paying tax here, but generally no, this would not be taxable. Just make sure you can show that whoever is sending the money did pay tax on that income originally in case the ATO ever questions the large amounts hitting your bank accounts but not being disclosed in your tax return.
Re: question 1 I think it all depends on the country and whether there is a double taxation agreement or not (preventing being taxed in the first cohntry and taxed again in Australia). For some countries I believe you will be taxed twice on that income.
You need to first work out whether you are a resident for Aust tax purposes.
Sounds like a visit to your local accountant could be helpful :)
You have asked some pretty "heavy" questions here. As such, I strongly suggest you get professional advice for if you make a mistake it could prove extremely costly.
If we are selling an asset in another country the profit earned there so I have pay tax here in australia.
what type of assets are we talking about? what entity were these assets purchased under and how were they paid for?
Can gift/receive gift no problems
Creditor will claw it back if there is a sinister motive.
1 - If you are an Australian resident for tax purposes, then you need to declare your worldwide income. So this will include income from your fixed deposits from another country. However if you paid tax on this income in that other country, you will be entitled to a foreign tax offset in your Australian tax return. This helps to prevent you from being taxed twice essentially. This is generally the case (I won't go into Double Tax Agreements).
2 and 3 - Gifts are not taxable in Australia.
4 - See answer to Q 1. A bit more messier to calculate because it involves Capital gains tax.
Best to seek professional advice though.
Thank you all for the help..!!
phone the ATO
13 28 61