/ foreword
Whether at home or abroad, the tax problem is being severely hit, but still some Chinese accidentally hit the gun.
After naturalization, a wealthy Chinese returned to live in China, but he was vindicted that he did not have to pay taxes, all because he did not know the "strange rules".
In 1, the return of Chinese tycoons to be checked for tax evasion was the latest case of overseas Chinese assets being checked one after another.
Just last month, there was such a thing.
One Ms Jin, who became PR, in 2006 and then invested in several properties, caught up with the housing boom, and Ms Jin, who made a fortune full of individuals, joined the country.
Naturalization has also become, career also has, the family is also happy, originally all calm, smooth water, but three years ago, Ms. JIin still feel that foreign living is not used to, so moved back to the status of foreign personnel to live in the country.
For three years, Ms. Jin not only continued to invest overseas, but also at home, making a lot of money.
But in the first half of this year, trouble is coming!
The Inland Revenue Department suddenly began to check the tax, and found out about Ms. Jin's head!
Ms. Jin didn't feel much at first, because she spent the last three years mostly in the country, except for occasional vacations.
According to law, you don't live abroad for 183 days, it's not a tax citizen, you don't have to pay taxes at all. As a result, the tax reporting season has not been in charge of its own tax problems for three consecutive years.
This is so clear!
So Ms. Jin is still living her life in the country.
Who thought that, in less than a month, she was suddenly informed by the Inland Revenue Bureau that she had not paid taxes in the past three years, and had violated the tax law!
Mrs. Jin's chin fell!
She looked at the tax code over and over again, and it said, "living for less than 183 days a year is a non-tax citizen."
The Inland Revenue Department must be mistaken!
2, tax department: it's you! So she immediately wrote back to the Inland Revenue Department, saying that she had lived there for several decades in the past three years, a dozen days a year, and that according to law, should there be no tax? Are you mistaken?
As a result, the Inland Revenue Bureau wrote back: yes!
Jin is really scared this time, hurriedly beat back to deal with.
To know that the three-year tax is not a small amount, maybe it will be penalized to lose their property!
But why would they be considered tax residents if they didn't stay until 183 days?
Ms Jin's case is one of the more controversial parts of the tax code, an exception.
It turns out that while the "183-day test" is a very important criterion for determining whether it is a tax citizen, there are many other factors that the IRS will consider.
In the case of Ms. Jin, the Inland Revenue Department took into account two important factors:
One is the bond of life, the other is the bond of assets. Through these two factors, the Inland Revenue Bureau determines that Ms. Jin has a residential link.
Because although Ms. Jin did not live for a long time in China, her daughter was still attending school there, and Ms. Jin often used her local bank account to pay her daughter for tuition, living expenses and shopping. This is the bond of life.
In addition, Ms. Jin has not only a regular home in the area, but also three investment properties, which are profitable every month. This is the asset bond.
So in this case, the Inland Revenue Department decided that Ms. Jin had a clear residential link, so she was classified as a tax resident.
Mrs. Jin yelled wrong!
This is also called tax citizen?
So she was angry and sued the Inland Revenue Department!
When she went to the local court, the local court ruled that Ms. Jin had lost the case, arguing that the Inland Revenue Bureau had a good reason.
Not only that, in the course of the trial, CRS landed, court also found that Ms. Jin's income in China, according to Ms. law, Jin to pay more taxes on overseas income!
This is getting worse!
Ms Jin did not hesitate to appeal to the federal court again, and the case has not yet been settled.
If she loses, Ms Jin could face huge fines and a hefty lawer fee.
Maybe a house in Shanghai is gone.
Anyway, this case is a "literacy" for us!
It turns out that even if not full 183 days, it is possible to be tax residents, even if this possibility is very small …
Let's take a look at what the Australian tax citizen is.
3. The Australian standard for tax residents is in fact very complicated to set down the criteria for judging tax residents in Australia.
But in most cases, 183 days is enough, so few people know other criteria, sometimes used by ATO.
There are actually four standards for Australian tax residents
The settlement test is mainly to judge your subjective will to settle in Australia, but your subjective will is not in your mind.
ATO is generally judged from the following aspects:
Whether the former Australian tax residents, if yes, it will be more difficult to give up tax residents;
Living time, habitual intention, life bonds, assets bonds, employment status, business ties, social ties, etc.
2 permanent residence
ATO will determine whether Australia is your permanent residence, usually based on the length and continuity of your stay in Australia, but if there is a real estate, then the willingness to live is naturally strong.
3 183 days residence test
This well-known criterion, in many cases, is used to judge people who are not Australian nationals, whether they are students or part-time travel visas, whether or not PR, stays for only 183 days, unless there are special circumstances. Otherwise, they are tax residents.
4 pension test
If some Australian companies send you overseas, because your pension is still in Australia, it is often considered an Australian tax citizen. Many civil servants apply this rule.
4. Australian citizen to declare overseas income
If the above decision belongs to "tax residents", then the editor must remind everyone that tax residents not only have the obligation to declare Australian income tax, but also to declare all overseas income obligations!
After this part of the tax returns, it is possible to avoid repeated collection, but must declare!
The Australian Inland Revenue Authority (ATO) is stepping up its supervision of Australian citizen overseas revenues to encourage people to voluntarily confess undeclared income, or face high fines.
If the circumstances are serious, it may even be possible to learn from the United States government to revoke the citizen passport.
In addition to income tax, the value of assets around the world, investment profits, must be paid in accordance with the law.
Australia's tax policy is getting stricter, and with the CRS landing in China, Australia is cracking down on global money laundering.
If you want to avoid tax for overseas income, you must provide corresponding evidence and evidence.
At present, as long as your Australian bank account receives large transfers from overseas accounts, it may attract the attention of the Inland Revenue Department.
If the IRD thinks you are suspected of money laundering or tax evasion, you may be asked to explain the source of the transfer.
Therefore, the editor should remind you that overseas transfers must be kept good bank documents.
In addition, it is best to avoid frequent, regular overseas transfers, so it is easy to be considered overseas wages.
In short, do not act blindly!
Because they do not understand Australia's tax laws and regulations or have the mentality of taking advantage of the loopholes, and they are not seeking truth from facts in their tax returns.
This may not only be high fines, but may also lead to their hard-fought efforts to obtain the Australian identity to be revoked!
Finally, Australia's tax laws should be familiar, some cold, easy to ignore details, sometimes can have a major impact.
Although paying taxes is not a pleasant thing, after all, we enjoy the basis and obligations of various benefits.
Everyone is responsible for paying taxes according to law!