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Old 10th Aug 2004, 12:49
  #17 (permalink)  
Prong Wallop
 
Join Date: Sep 1999
Location: Melbourne, Victoria, Australia
Age: 69
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Hey KapM
You are only half correct in what you say regarding Australian tax. The crux of the situation is whether you are resident or non-resident of Australia, for tax purposes. If you are deemed non-resident by way of satisfying the resides, domicile, 183 day, and superannuation tests, then income sourced outside Australia does not have to be declared. Only if you are an Australian resident working overseas do you have to pay Australian tax on foreign sourced income, which may be mitigated by double taxation arrangements.
If you work overseas and your family resides in Australia, you're knackered. If you sell your house, close your bank accounts and move the whole catastrophe overseas you would have a case for no tax.
It sounds like you didn't satisfy the non-residency rules, yet deemed yourself non-resident and didn't pay the tax, a fatal error, as you have no doubt found out. There have been hundreds in the same boat after 98 who thought no tax was liable just because they were physically overseas, an erroneous conclusion that has always been fraught with danger.
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