Welcome to the Dockwalk.com Forum

 

In order to post a comment in one of the forum topics, you must log in or sign up. Your display name will appear next to your posts unless you check the Post Anonymously box. When writing a post, please follow our forum guidelines. If you come across a post that you would like us to review, use the Report Post button. Please note the opinions shared in the forums do not necessarily reflect the views of Dockwalk.


RSS Feed Print
What to do with the pay
Graemer
Posted: Tuesday, February 3, 2009 8:25 AM
Joined: 27/11/2008
Posts: 10


Hi All,

Probably more aimed at other Kiwis who are already in the industry, but would be good to get peoples opinions...

What's the story with pay; specifically do you still use your home bank account or have you set up an offshore account to avoid the local taxman?
What about sending money home to cover the mortgage and feed the dog etc...
What is the general consensus for owners, do they want to declare staff salary through their relevant tax system, or is (and can it be) all done through tax havens?

I was tempted to throw this in the tax section, but figure its probably worth seeing what most people do first then look to what the tax liabilities are based on the various options that are out there.

Thanks!



Anonymous
Posted: Tuesday, February 3, 2009 11:32 AM
At lunch I did a quick deckhand financial management survey.  No Kiwis around, only Australians.  They have a very simple and  effective way to handle the cash.  They divide their paycheck in half.  The first half they spend during the week on beer, videos, sunglasses, music etc.  The second half they save until the weekend and then spend it  to chase stewardess's, buy expense dinners , rent cars, drink more beer, go to the mountains etc.   Simple, worry free and direct.
Anonymous
Posted: Tuesday, February 3, 2009 12:36 PM
Well if your over in the south of France they got a slick outfit that handles yachties money. The business is listed in the phone book as Milkum Marine SL.  they work alongside the financial consultant firm, Doolittle and Billum Int.  Been in business for years.  You hand your cash over in brown paper bags and they see to it that its well taken care of.   No more money worries.
monback
Posted: Tuesday, February 3, 2009 2:05 PM
Joined: 21/01/2009
Posts: 36


You must be some kinda beginner !  What the hell are you talking about....a bank account.  Are you trying to destroy everything that we have built ?   Young man ,the number one rule around this industry is that the money that comes in NEVER goes out.  NEVER.  IS THIS CLEAR ?  since your a Kiwi I will repeat...  one more time.  Your cash stays on the waterfront.  Do you UNDERSTAND ? 
   Young boy, hundreds of ex captains and crew have set up services around the waterfront with the sole intent of  funneling crew cash into their pension funds.   Bars ,Restaurants, Agents, crew houses, middle men, you name it...they even have special ex yachty REAL ESTATE AGENTS to feed off you.   And lets not forget ..It is your duty to pay for and acumulate as many tickets as is humanly possible....Im talking   Tender driving 1,  Tender Driving 2, rope coiling advanced, origami napkin folding, Vacuum cleaner basics, Boat detailing 1 2 3, Indoor mosquito control, Window wiping, Advanced left and right hand Squeegee operation....and on and on.... Get the picture BOY. The moneys stays put.... Dont be bringing your bad Banking, savings habits into the industry. Who the hell do you think your are......... Have I been perfectly clear ???

Anonymous
Posted: Tuesday, February 3, 2009 7:31 PM
Give the lad a break he only wants to get on and take care of his wife and dog.  Send as much as you can home and then spend it on beer.  Don't give those ex yachties anything they have made enough time to let others in.
d3viant
Posted: Tuesday, February 3, 2009 8:00 PM
Joined: 07/09/2008
Posts: 14


I'm a kiwi, and have always just given the boat my NZ bank account details - the money has gone across on a monthly basis, and nobody's asked any questions or raised any eyebrows.  (Plus, the doubling of euros to NZ dollars looks great on your bank statement).  To be honest, I've never been sure what all the fuss is about, when it comes to offshore accounts, other than the social bragging rights with your non-yachtie friends about having an account in the Caymens.  They can also be a bit of a pig to set up, too (the account, not your friends).

I was told once that any money earned offshore can't be touched by the taxman.  The only way you'll ever get taxed on it is on the interest you earn on that money, since the interest is actual money earnt on NZ soil.  The principle has been earnt offshore and should be left alone.

I could be totally wrong here, and would also like to hear any plain truth advice (the joke's over now guys!) that people out there may have on the matter.


Graemer
Posted: Tuesday, February 3, 2009 8:49 PM
Joined: 27/11/2008
Posts: 10


monback wrote:
You must be some kinda beginner !  What the hell are you talking about....a bank account.  Are you trying to destroy everything that we have built ?   Young man ,the number one rule around this industry is that the money that comes in NEVER goes out.  NEVER.  IS THIS CLEAR ?  since your a Kiwi I will repeat...  one more time.  Your cash stays on the waterfront.  Do you UNDERSTAND ? 
   Young boy, hundreds of ex captains and crew have set up services around the waterfront with the sole intent of  funneling crew cash into their pension funds.   Bars ,Restaurants, Agents, crew houses, middle men, you name it...they even have special ex yachty REAL ESTATE AGENTS to feed off you.   And lets not forget ..It is your duty to pay for and acumulate as many tickets as is humanly possible....Im talking   Tender driving 1,  Tender Driving 2, rope coiling advanced, origami napkin folding, Vacuum cleaner basics, Boat detailing 1 2 3, Indoor mosquito control, Window wiping, Advanced left and right hand Squeegee operation....and on and on.... Get the picture BOY. The moneys stays put.... Dont be bringing your bad Banking, savings habits into the industry. Who the hell do you think your are......... Have I been perfectly clear ???
---

Thanks monback, for someone who doesn't talk about money ever (as per other posts you have made) you sure seem sensitive about it. 

Good to see you supporting the locals - keep up the good effort!

Graemer
Posted: Tuesday, February 3, 2009 8:55 PM
Joined: 27/11/2008
Posts: 10


d3viant wrote:

I'm a kiwi, <snip> - Yep, I can tell. The useful and helpful answer that you gave gives it away! 

...I was told once that any money earned offshore can't be touched by the taxman.  The only way you'll ever get taxed on it is on the interest you earn on that money, since the interest is actual money earnt on NZ soil.  The principle has been earnt offshore and should be left alone.

I could be totally wrong here, and would also like to hear any plain truth advice (the joke's over now guys!) that people out there may have on the matter.

---

NZ has Double Taxation Agreements with a number of other countries so the NZ taxman may assume that you are already paying tax in the country that you are paid from.  This may cause some problem if they ever decided to audit you (assuming that you are being paid tax free).  But, this is exactly the kind of question that I am trying to find out if it is actually an issue.



Anonymous
Posted: Thursday, February 5, 2009 5:02 PM
FYI-I would be really careful about getting too creative with banking offshore. A lot of offshore banks do not insure deposits, and if big national banks are failing, you could end up losing everything if your offshore bank tanks. You may have less to lose if you just pay the tax and put it in a bank that's safe. (Does such a bank exist anymore? I'm not sure.)
Anonymous
Posted: Wednesday, February 25, 2009 8:24 PM

I just called the NZ Inland Revenue Dept.  In typical fashion, the person on the line wasn't that knowledgeable on the subject, but the general consensus was that one should declare foreign income in their next IR3 tax return form in NZ.  Any tax credit that might be owed to you is worked out on the foreign tax paid.  In the case of us yachties, that'll obviously be nothing.  Then I think they look at taxing the NZ equivalent.  But she wasn't clear on how that happens.

Yes, there is that Double Taxation Agreement ( http://taxpolicy.ird.govt.nz/international/DTA/roleofdta.html), but I don't think it's going to apply in this case.

From what I got out of the conversation, as long as you don't actually declare your foreign-earnt income in your IR3, there's no way the IRD will know about it and get their greasy hands on it.

The only thing you're likely to get taxed on is any interest earnt on that money while sitting in your NZ bank account.  (But let's face it, it'll be an absolute pittance anyway)

I'm now gonna set up a foreign currency account connected to my local NZ bank account.  That way I can ride out the constant NZ-dollar exchange rate fluctuations, keep my pay in Euros, and keep it in my NZ account.  Seems like the best method to me, rather than faffing around with (possibly unneccessary?) offshore accounts.

Clear as mud?


Anonymous
Posted: Thursday, October 29, 2009 6:06 AM
Hiya mate,

Just a quick one to contribute.  I as a Saffa do not need to declare monies earned offshore if I am out of the country for more than 180 days of the year.  I still use my S.A acc to dep my salary and have never filled in a tax form.  We have one of the strictest banking systems in the world and have never heard from the tax man.  If my bank ask's me what the funds are for its a travel allowance.  But with this said I would still like to set up an offshore acc but I wouldn't put all my eggs in one basket..

rodsteel
Posted: Sunday, November 1, 2009 4:56 PM
Joined: 25/06/2009
Posts: 275


Hi,

 

As long as you are not a US resident and keep less than $250K (USD) on deposit, one of the safest "offshore" accounts in the world is in an American bank  (there are Euro denominated accounts available too).

 

Rod

 

P.S. Although wiring the money out can get expensive.


Roberto
Posted: Monday, November 2, 2009 6:14 PM
Joined: 26/04/2009
Posts: 1


Hey All
I have just gone through exactally what you are going through now, It turns out even if you are out of the country for a large amount of time, the NZ government will want you to pay tax on all your income if you have an "enduring relationship" with New Zealand, this can be family, bank accounts, property or similar. Unfortunatly the IRD are not very clear on where they draw the line. They do have a form on their website (www.ird.govt.nz) which you can print and return to them - they will then tell you if you are a non resident for tax purposes. Just do a search for IR886 on their website.
For more information IR292 is also a guide for who is a non resident, I recommend looking at this first.

For me personally I have just signed up for an offshore account - as banking location is taken into account when applying for non residency for tax, and i can use all the help i can get with a $40,000 student loan!

Good luck

Rob

Dan Heath
Posted: Tuesday, November 3, 2009 7:43 AM
Joined: 02/08/2009
Posts: 4



If you are from NZ, South Africa, Oz or the UK we have some useful information on our website regarding taxation. You can never assume that your ´home´tax office has forgotten about you - and you cannot assume that you are no longer a tax payer because you no longer live in your home country.

For example in South Africa you can remain a tax resident through the ´days test´ - which contrary to the above contributor is NOT 180 days. In South Africa you are considered a tax resident if

1) Over 4 years more than 91 days in each of these years you are in South Africa
2) In the first 3 of these 4 years you are in South Africa more than 915 days

Before you assume your tax status and set up your bank accounts etc please ensure your assumption is correct - as an error now can be costly in the future. If you are being paid tax free now - imagine having to back pay income tax in a few years when you go back ´home´. There are ways to reduce this risk.

Please look at our website www.yachtcrewmanagement.com

Send any questions to info@yachtcrewmanagement.com

Regards
Dan Heath
Yacht Crew Management




 
 Average 5 out of 5