Irish Bentley Lawyers have significant experience and an outstanding reputation in taxation law with Australian citizens and residents. We have dealt extensively with all types of taxation matters and the Australian Taxation Office.
How to Protect Yourself as an Australian Taxpayer
Australian resident taxpayers must declare all income earned (whether it is earned in Australia or internationally) on an Australian personal income tax return. Discrepancies between your personal income tax return and your Australian Taxation Office tax assessment can trigger the Australian Taxation Office to re-assess your tax payable to include both shortfall and interest penalties, which can be up to 90%. The Australian Taxation Office’s calculated shortfall may substantially exceed the correct shortfall so you need good records to ensure the correct shortfall is applied.
As an Australian resident taxpayers you can help protect yourself by:
- Declaring all income earned in Australia and internationally on your Australian personal income tax return;
- Keep complete and precise foreign financial transactional records for the requisite statutory time periods;
- Disclose foreign assets over $50,000 on your personal tax return; and
- Seeking advice from an Australian taxation professional.
Residential Taxation Matters
Individuals who have business interest outside of Australia need to record substantial evidence of their foreign business interests and transactions. If you earn income outside Australia, then you need advice on the best way to handle your Australian tax affairs.
We have extensive expertise in acting for clients on tax residency matters contesting re-assessments exceeding 50 million. We also have some 14 years’ expertise in migration law through our migration law division which has helped countless new Australians sort out the tax residency issues associated with migrating in Australia.
If you do not keep evidence of your foreign dealings, you may expose your interests to significant risk. The Australian Taxation Office is targeting those with foreign bank accounts income, assets or other international interests. In the recent case of Gui Ping Wu v Commissioner of Taxation  AATA 78, a Chinese citizen (who was an Australian resident) lost a considerable amount of personal funds originally from his Chinese bank account because he did not provide the Australian Taxation Office with sufficient evidence to prove the accuracy of his Australian tax return.
If the Australian Taxation Office performs a “re-assessment” of your Australian personal income tax return and discrepancies are found, you can be taxed the applicable income tax rate in addition to a severe shortfall penalty. This cumulative taxation and penalty rate can be up to 90% on your foreign business interest. Additionally, the Australian Taxation Office’s calculation for an imposed shortfall penalty may substantially exceed the correct shortfall amount, which you can be liable to pay.
What you need to know about residency tax?
- For those already living in Australia (whether you are a citizen or a resident), seek professional taxation advice and keep all relevant documentary evidence of your foreign business dealings. Whether you are looking to pre-emptively safeguard your foreign interests or the Australian Taxation Office is conducting a “re-assessment” of your personal income tax return, Irish Bentley Lawyers can minimise the risk of exposing your interests to harsh penalties or overvaluations of potential shortfalls.
- If you intend to become an Australian resident with a bank account, assets, income or other international business interests, it is critical to ensure that your foreign interests are protected. Irish Bentley Lawyers has worked extensively with the Department of Immigration and Border Protection and the Australian Taxation Office. We can streamline the migration process while providing the best protection for your interests.
For all matters relating to the Australian Taxation Office or other taxation related issues arrange an appointment with us on by calling 07 3229 4060 or email us at email@example.com.
Disclaimer: The above does not constitute legal advice and Irish Bentley Lawyers make no representations or warranties as to the accuracy of any of the information contained herein. If you have a taxation issue, please do not hesitate to contact the team at Irish Bentley Lawyers.