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Investments & International Taxes

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  1. #61

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    Jun 2019
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    Quote Originally Posted by TheBrit
    Depends if the ATO has the systems or resources to deal with all the information they receive I guess Have a look, I am not 100% but I'm fairly confident these protocols put in place automatically shared information rather than having to be requested.
    Its only automatic if the banks know your country of citizenship. Banks and tax authorities will not just willingly share this kind of information with every other country in the world that has signed up to the CRS. The CRS puts the legal obligation onto the banks who need to identify your citizenship. This is why they get your passports when you sign up. All banks do this is your a foreign citizen now. Once armed with this information they pass bank balances to their local tax authority which then passes it onto the country in which you are a tax resident. However in the case of the Singaporean guy I dont think this will be passed on automatically as when he opened an account in Singapore he wouldnt need to provide other passports as he is a citizen of Singapore. He could be living on the moon and the banks wouldnt know. At least this is my understanding.

    Quote Originally Posted by bdw
    No I'm not sure at all. But just thinking out loud, if an SG citizen works and takes up tax residency in Australia, then its the Aussies that would first gain knowledge of this fact and should be the ones requested his SG finance information if necessary. I guess the SG authorities would then also learn of this fact and maybe a two way exchange of information begins. But I doubt SG would openly share information about all 3 million of its citizens with Aus, and Aus all 25 million of its citizens, until some event of some kind has been triggered.
    I guess they could yes but i doubt that tax authorities are in the habit of asking foreign banks for foreign citizens bank account details nor am i certain how willingly banks will give this information out when they are not legally obliged to. In any case as you said I think they will do this only if they have reason to suspect the person if avoiding tax. Given that these processes are all done by computers there would likely be some kind of threshold and/or red flags events that raise suspicions. To my mind the only thing that would do this is if this Singaporean guy started funneling money into australia from Singapore. I know that Australia has a $10,000 threshold whereby if you send more than this amount into an Australian bank account the bank is legally obligated to report this amount. My wife has done this several times sending money from HK to Aus and we have never run into any issues however she is not a tax-resident of australia so I guess they assume it is money earned overseas (which it is).I am only going off my intuition though on these things and none of us work in these tax offices so its hard to say exactly what triggers suspicion in any given tax department.

  2. #62

    Join Date
    Oct 2010
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    18,618
    Quote Originally Posted by Mystery87
    Its only automatic if the banks know your country of citizenship.
    Citizenship or residence. Both have tax implications.

    Quote Originally Posted by Mystery87
    Banks and tax authorities will not just willingly share this kind of information with every other country in the world that has signed up to the CRS.
    Umm, nobody claimed that?

    I'm sure there are loopholes, and I'm also sure they are being systemically identified and closed each year.

  3. #63

    Join Date
    Jun 2019
    Posts
    21
    Quote Originally Posted by bdw
    With regards to how to transfer money from HK to Aus, try instarem. On HK end, its a local HKD transfer into instarem DBS account. On the Aussie end, instarem will do a local AUD deposit into your Aussie account. Not only does instarem offer the best rates (better than any HK bank), no TT fees, no inward remittance fees in Aus, but as an added bonues being basically two sets of local transfers maybe is a good way to bypass the scrutiny of the Australian authorities. I dont know, just guessing. But I transferred HK$1m to Australia using instarem last week (approx AUD$200k) and there was no red flags raised anywhere and money popped up in my Bankwest account in no time.
    This sounds a lot like transferwise. I have used this service in the past. Im not sure this necessarily circumvents the problem however. It is still money being transferred into your account. Im not sure the fact that it is a local account makes a difference. Australian banks are required to report amounts of $10,000 or more regardless of where the money comes from.

    I think in your case you don't live in Australia yet and are not a tax resident there so it doesn't matter how much money you transfer over there because it is money earned overseas and thus they have no rights to any of it. Also even if they had some claim to it I don't think they would chase you for money until after you fill in your tax return. I think they more or less give you the opportunity to fill your tax return in honestly. Its only if they deem there to be a discrepancy between your tax return and what they think you earned that they will chase you.

  4. #64
    bdw
    bdw is offline

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    Feb 2009
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    5,457
    Quote Originally Posted by Mystery87
    This sounds a lot like transferwise. I have used this service in the past. Im not sure this necessarily circumvents the problem however. It is still money being transferred into your account. Im not sure the fact that it is a local account makes a difference. Australian banks are required to report amounts of $10,000 or more regardless of where the money comes from.

    I think in your case you don't live in Australia yet and are not a tax resident there so it doesn't matter how much money you transfer over there because it is money earned overseas and thus they have no rights to any of it. Also even if they had some claim to it I don't think they would chase you for money until after you fill in your tax return. I think they more or less give you the opportunity to fill your tax return in honestly. Its only if they deem there to be a discrepancy between your tax return and what they think you earned that they will chase you.
    Yes you might be right, and yes instarem is just like transferwise but for AUD in particular I find it offers slightly better rates so try that next time you need AUD. But I think transferwise better for USD and some other currencies.

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