Tax in NZ/Australia

[kmagyoyo]

G'day,

I am about to start as a DEFO in Aussie but plan to live and commute from NZ.

If anyone out there in PPrune land knows a good accountant who can sort out the tax issues then please PM me. Obviously I would like to donate as little money as possible to Helen's massive vote buying fund :8

Thanks in advance
Kmag.

[superfrozo]

Ahhh - want to have your cake & eat it too hey T??

No accountants to recommend, but you may want to get a good lawyer in a few years when both the ATO and the NZTO come for their taxes & fines.

Better you join your bros in Bondi on the dole mate - you'll be better off in the long run. :ok:

PS. It's not enough you take my basing, now you don't even want to live there???? Oh the humanity!!

[kmagyoyo]

Seriously; being paid A$ into a HKG account and living in NZ (to start with anyway) and sorting out my own tax is WAY above my pay scale. As soon as you mention 'double tax agreements' my brain switches off...anyone know anyone??? Bueller....

PS So I would officially be off your Xmas card list B if I had a MEL base then :E

[superfrozo]

Kmag,

I'm fairly sure you will be paid $Oz into an Oz account. Technically you won't be working for Cathay, rather the basing company "Veta". You actually sign on with Cathay, but on day one of your training in HK you sign a resignation... and job acceptance for "Veta" all in the space of 5 mins (I sh!t you not).

The only issue is how much time you spend in each country - more than 180 per year in Oz and Howard (soon to be Rudd, the male version of Helen... no wait, she is male - man that screws with your brain) will take full Oz taxes. I reckon as a 'bus FO you'll probably come close to cracking 180 days actually in Oz - they will get their pound of flesh from you.

No idea what iNzud rules are there mate - question on sport. One thing's for sure, you better get professional advice ASAP. Maybe even ask for a ruling from the ATO/NZTO. You DON'T want to be like a few commuting Ozzies who are getting rude letters from the ATO as to their "Oz lifestyles on HK tax" conundrum.

And yes, as livid as I am, I would be even more crimson if you took a Melb. basing. Never fear, they're being taken by the ex-81WG "scabs"! (You know who you are, Mr bullet time!!!):}

[404 Titan]

superfrozo

Just a clarification for our Kiwi friend. If he takes an Aus base he will be paid Au$ into a HK bank account which he can transfer straight to NZ. Assuming he does four Aus – HK – Aus trips a month he will spend at most 12 days in Aus a month, well under the 180 days. Since his family also lives in NZ and he has no ties with Aus except that he operates flights out of there, he will not have to pay Aus tax. I wouldn’t ask for a ruling in Aus but if I was him/her I would get some professional advice from an accountant in NZ regarding his standing there.

Regarding the issue of HK based guys that commute to Aus being asked to pay Aus tax? I have not heard of any cases myself and I keep my ear very close to the wall on these types of issues. I do know of quite a few Aus based guys that have received letters from the ATO advising that they owe back taxes. This may be before your time at CX but it relates to a ruling by the ATO on the use of 23AG by CX pilots based in Aus and goes back quite a few years.

[kmagyoyo]

Thanks 404 Titan,

Basically the only time I will be spend in Oz will be in a Hotel either before or after a duty when the flights home don't align ie as non resident as you can get.

Question is- does anyone who works for CX out of AKL have a good accountant they can recommend??? Furthermore, can I 'contract' my services to OABL (legally in the eyes of the IRD) and claim commuting expenses etc while paying company tax???

Sorry SuperFrozo, didn't spend long enough drinking coffee in the 1 Sqn crewroom to pick up on that reference.

[Dixons Cider]

Cant help you with a good Tax consultant/accountant, but what I can tell you is that IRD have got you and wont let you go easily! :uhoh:

Regardless of where your income is originating from and whether you spend more than 183 days out of the country, you will be deemed to be a tax resident and therefore liable for tax on your worldwide earnings. All because you have what they call an enduring relationship with NZ.

re your contracting idea, its outside my dealings with them, but try it man. Anything to reduce the pain!!!

[Dashtrash]

Where does this 180days figure come from? was looking at this option a while back and the ATO site refers to exempt foreign income being in continuous blocks of at least 91 days. Even then, exempt income still has to be declared so your Oz income can be taxed at the appropriately high rate. You can return to oz on a short break but the stay cannot be considered as an extended break which is more than 1/6th of the period. Not an accountant but it looks pretty straightforward that you can't get out of ox tax if you live here. If your living in NZ working in HK I guess your not an OZ resident for tax and your stays would be short enough not to attract tax.

[Dixons Cider]

kmagyoyo

If you are still working on this one, here's a cut n paste from the IRD that refers to what I was trying to explain.

..and the link to the full guidehttp://www.ird.govt.nz/resources/file/ebe7ef02750a0ad/ir292.pdf

Tax residence rules for individuals

Who is a New Zealand tax resident?
You’re a New Zealand tax resident if:
• you’re in New Zealand for more than 183 days in any 12-month
period, or
• you have an “enduring relationship” with New Zealand (see below), or
• you’re away from New Zealand in the service of the New Zealand
government.

The 183-day rule

If you’re in New Zealand for more than 183 days in any 12-month
period, you’re considered to be a New Zealand tax resident from the day
you arrived. The 183 days don’t have to follow each other. For example,
if you come to New Zealand for 10 days in April and then return for
20 days in September of the same year, it will be counted as 30 days. If
you’re in New Zealand for only part of a day, it is counted as being a
whole day. This means that the days on which you depart or arrive are
treated as “days present” in New Zealand.

An enduring relationship with New Zealand

The Income Tax Act 2004 says that a person, other than a company, who
has a “permanent place of abode” in New Zealand is a New Zealand tax
resident. “Permanent place of abode” means more than just the building
you live in , it covers all your ties and links with New Zealand. These
may be social, physical, economic or personal. Overall, the test could be
described as whether you have an enduring relationship with New Zealand.

Let me know if you find a cunning plan! :}