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Banking & Tax for Australian Crew
Dawntreader II
Posted: Tuesday, March 17, 2009 10:41 PM
Joined: 20/02/2009
Posts: 3


Hi all,

Does anyone know the best way to organise banking while working in the super yacht industry either specific for Australia or general?

A) Will I need to pay Australian Income tax if I transfer the money into my Aus bank account

B) Is there a better to hold your money & investments in other country?

 

Thanks

Phil


Anonymous
Posted: Wednesday, March 18, 2009 9:03 PM
Just give your employer the swift code for your bank and your account details for a wire transfer. You are not taxed on money earned outside of Australia but you are taxed on interest made. This is my set up and info from and australian accountant please feel free to correct me if im wrong because i would also like to know otherwise
Anonymous
Posted: Wednesday, March 18, 2009 10:51 PM

Hi Phil,  My understanding is it is best to keep your foreign earnt income offshore.  Once funds come into an Australian bank account you open yourself up for investigation from the taxation office.  I would suggest contacting Damon Young from All State Partners who are accountants specialising in Australian taxation matters for the superyacht industry, vessels and crew.  Damon Young's e-mail is damony@allstatepartners.com 

Best regards Carrie Carter, Carter Marine Agencies Pty Ltd, Cairns Australia.


Anonymous
Posted: Wednesday, March 18, 2009 11:12 PM
Anonymous wrote:

Hi Phil,  My understanding is it is best to keep your foreign earnt income offshore.  Once funds come into an Australian bank account you open yourself up for investigation from the taxation office...

 

I thought that would be the case in opening up the chance of having to pay tax on the money coming in, but would be interested to see if other people are doing the same.

Do you know what country is best for holding cash and investments OS?


YankwittLAw
Posted: Tuesday, April 14, 2009 5:47 PM
Joined: 04/02/2009
Posts: 1


Hello

 

This is a very often asked question.  In accordance with USA federal tax law, depositing money in an offshore bank account is not illegal.  You are required to report the fact that you have such a bank account.  It is illegal though not to report this money on your tax return.  Especially after the most recent G-20 summit in Europe last week, the world has gotten a little smaller and the tax havens once secret are headed in the other direction.

If you are paid by check, wire transfer, or you deposit the money into a financial institution of any kind there will be a trace of the funds and although the US armed forces can not find Bin Laden, the IRS for sure would if you catch my drift.

When you are not a US citizen, US tax law can still apply to you if you are physically in the states for a substantial period of time. To see if you qualify for this special test please visit my Website  WWW.MyTaxGuru.Com.  Please keep in mind a substantial period of time in short does not mean more than half the year.  It is a crazy three year test.

I am not an Australian attorney or accountant. I am in the USA therefore I cannot comment on your Australian situation.  Any further questions please contact me 954-763-2829 x 201  Thank you  Eric Yankwitt

 

 

 

 


Anonymous
Posted: Thursday, August 26, 2010 6:48 AM
Paul Hogan made famous by Crocodile Dundee movies, returned to Australia for his Mother’s funeral and then was retained by the Australian Taxation Office for alleged tax evasion. While Yacht crew might not be making millions, this should be taken as a warning for Australian crew returning home with large chunks of money and/or money held in offshore accounts etc. It comes as no surprise the ATO has decided to clamp down of Aussies working abroad that don’t do their taxes correctly. I doubt very much that all crew even understand the whys and wherefores of tax, sticking your head in the sand is not going to make it go away.
Anonymous
Posted: Thursday, August 26, 2010 10:44 PM
Well where does one start on this topic. I have been sieving through the plethora of information on this matter for a number of years. I am by no means a Chartered Accountant or Aus. Tax lawyer, just another Yachtie making a living. Here is what I have found out though, through Accountants, Tax Lawyers and Financial Advisers; As an Australian citizen the ATO expects you must pay tax somewhere. If you are listed as a resident, than this is to the ATO and if you are listed as a non-resident, then to the country that you reside in. My Aust. accountant forwarded me once the ATO’s official view on Seafarers. As far as these leeches are concerned, they feel they are entitled to tax your earnings, no matter how many days you spend at sea per year and it is irrelevant in what waters you are sailing in. If you happen to be listed as a none resident, than there “SHOULD” not be any problems with wiring money home, because you would have paid tax on this somewhere in the world. The ATO can chase up this information under the Tax Information Exchange Agreement (TIEA) that numerous countries have signed. Now here is the kicker; if you are an Australian Resident, earning a salary abroad, paying taxes in another country, than these taxes must be equal to or greater than those of the ATO’s. If not you are expected to pay the ATO the difference. SO.... getting back to your two questions. A) YES. B) SOMETIMES. If you do have an account somewhere else in the world, than never transfer/wire cash from an account with your name on it, to your own account in Aust. As this can be traced by the Feds and the ATO if they see fit. As a couple of the posts have mentioned, the world is getting a lot smaller. Be carefull what you do. The ATO is currently spending around $500mil on chasing down people like Paul Hogan and Yachties.
Anonymous
Posted: Thursday, August 26, 2010 10:46 PM
http://en.wikipedia.org/wiki/Tax_treaty
rodsteel
Posted: Friday, August 27, 2010 6:29 PM
Joined: 25/06/2009
Posts: 277


This issue seems to be a recurring theme

 

However, for a tax-treaty to be applicable so that minimum tax liability can be obtained requires proper and appropriate "tax residency".

 

It would also seem that yachties have the greatest opportunity to establish "tax residence" in almost any jurisdiction they choose.

 

Amongst the experts (both professional and amateur) that monitor these threads there must be a few who can answer the question "Which is the best and how does one qualify for residence?".

 

Rod

 


Anonymous
Posted: Saturday, August 28, 2010 5:56 PM

   A good place to start would be to follow the example of the individuals working for overseas military contractors from your home country.

    In the case of US residents under multi-year contracts in places like Iraq, the employee usually qualifies for upwards of $90,000 USD income-tax-free (they still have to pay SS taxes) and an additional housing allowance of roughly $15K to $25K completely tax free). To qualify, yearly tax returns must be filed in the US (the States usually honor the Federal exclusions).

    http://www.irs.gov/businesses/article/0,,id=202079,00.html


 
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