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Old 28th Aug 2016, 02:27
  #2462 (permalink)  
Popgun
 
Join Date: Apr 1999
Location: Brisbane
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...how do you get around getting slammed by the Aus ATO any information would be great. cheers lads
You can get around all of it if you really want to...right up until the moment you are audited!

It isn't simply a matter of being out of the country for more than 183 days. (Though that would be of benefit to a non-resident tax status if you have no other ties to Australia)

The factors the Tax Office says it typically gives weight to are:

intention or purpose of presence
family and business/employment ties
maintenance and location of assets, and
social and living arrangements.

If, for example, you have a wife and/or kids living in Australia then you will be highly likely deemed Australian-resident for tax purposes. If you maintain a 'second' home in Australia and can't sufficiently demonstrate a 'primary' home in another country then you will also be deemed to be Australian resident. If you always spend most of your days off each month in Australia then you will likely be deemed resident. If you have rental property (or other business) and it is only located in Australia then that is another nail in the "I'm not resident" coffin.

It used to be a lot easier in years gone by to operate in the grey areas in our industry when living in Australia but working offshore. Unfortunately the ATO is on to it these days. During an audit they will try to discern where the 'centre of your world' is located and the onus will be on you to prove otherwise.

If you are audited, it will greatly assist your case if you can PROVE to the ATO that you are actually resident and domiciled in another country to avoid a ruling that you are Australian resident. Paying tax in a foreign nation is great supportive evidence.

It's quite complex and I would recommend you go and pay for some competent specialist tax advice on the matter. Don't rely on PPRUNE!

Like I said, you can do whatever you wish with your foreign income...right up until the point you receive an unfavourable audit and then are financially ruined for decades due to the onerous penalties imposed.

Good Luck!

PG

Last edited by Popgun; 28th Aug 2016 at 13:13.
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