U.S. Accounting - Ask Avmar
Banking & Tax for Australian Crew
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?
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 email@example.com
Best regards Carrie Carter, Carter Marine Agencies Pty Ltd, Cairns Australia.
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?
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
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?".
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).