Nowadays, many Chinese students and immigrants who come to Australia often receive remittances from relatives, friends, or remittance companies because of their financial needs such as living, home purchase and so on. How should these revenues be explained?
Since the beginning of last year, the Australian Inland Revenue Department has begun to conduct extensive inspections of overseas remittance projects. If Chinese with bank accounts in Australia have received overseas remittances in the past few years but have not reported their taxes, It is possible to receive a notice from the Australian Inland Revenue Authority asking taxpayers to give a reasonable explanation within 28 days. If a reasonable explanation is not given within the prescribed time limit, the amount of the remittance will be deemed to be the individual income of the taxpayer, and will be required to make up for and delay the payment of tax interest fines and default fines for incorrect payment of taxes.
So, what should you do when you receive a notice from the Inland Revenue Bureau asking for an explanation of overseas remittances? Here, this article gives some professional advice for reference according to different situations (according to different classification of overseas remitter) (the following information is the material commonly required by the Inland Revenue Department):
When your overseas remittances are sent directly by relatives, please prepare the following materials:
When your overseas remittance is remitted by your relatives through a foreign exchange company (e.g., China Exchange International, Huitong Finance, etc.), please prepare the following materials:
Time of submission:
The Inland Revenue Department will ask you to submit the relevant information within 28 days. If you think there is not enough time, you can call the Inland Revenue Office to apply for an extension of the submission. The Inland Revenue Department will generally approve the submission and grant you the right time to submit it. If you still think there is not enough time after an extension, you can apply to the Inland Revenue Department for an extension again.
These are the information that the Inland Revenue Bureau needs to prepare for overseas remittance inspections, no matter how likely they are to be picked up. All information is in order to clearly prove that the source of the remittance you receive is a gift or loan from your relatives and not your income from overseas investments. In view of the fact that some information will be difficult to prepare and obtain for a long time, in order to protect your personal tax interests in Australia, we recommend that you collect the remittance in a timely manner and retain the above information for inspection by the Inland Revenue Department.