Non resident of oz for tax purposes

[geoffw]

You will have issues with the 4 residency tests....because you are "resident" if you are sole director of Australian company, or if you own real estate in your own name.

this may not be the case. The Ato website cited previously in this thread gives an example of somebody who kept their own house in Australia while working overseas but were regarded as non residents for tax purposes. Other residency tests were regarded as more important- so it's not black and white.

 

[Rob G.]

So as far as you are a sole director of an Australian company, you are considered an Australian resident, even if it was just a $2 company which was a trustee of a trust holding property? Would this also be the same if there were multiple Australian directors, but you were the only one living overseas?

What about if the real estate was in your personal name, but it was held in 3 people's personal names, and you were the only person overseas?

Think you are getting confused with the central management & control test for company & trust residency ?

Cheers,

Rob

 

[Terry_w]

Watch out for unexpected consequences if you become a non resident and control
- Australian companies
- trusts
- SMSFs

 

[kristaje]

Watch out for unexpected consequences if you become a non resident and control
- Australian companies
- trusts
- SMSFs

Hi Terry,

Could you please elaborate on above?

We currently live overseas and hold properties under own name, unit trust (with hubby owning 100% of units), fam discretionary trust (with a company as a trustee, hubby and I are directors of this company) and smsf. Info from our accountant is that he would argue that the control and management of smsf, fam and unit trusts remains in Australia, as Australian-based PMs manage our properties on daily basis, all accounting work is done in Australia too, etc. This way we wouldn't be affected by the recent changes in cgt, except for properties hold under personal name. Just wonder if this is your understanding too?

How does ATO usually define the location of control and management?

Thanks.

 

[Terry_w]

Hi Terry,

Could you please elaborate on above?

We currently live overseas and hold properties under own name, unit trust (with hubby owning 100% of units), fam discretionary trust (with a company as a trustee, hubby and I are directors of this company) and smsf. Info from our accountant is that he would argue that the control and management of smsf, fam and unit trusts remains in Australia, as Australian-based PMs manage our properties on daily basis, all accounting work is done in Australia too, etc. This way we wouldn't be affected by the recent changes in cgt, except for properties hold under personal name. Just wonder if this is your understanding too?

How does ATO usually define the location of control and management?

Thanks.

I am currently overseas myself, sp can't elaborate, but I think you accountant is wrong about this.

 

[Rob G.]

Info from our accountant is that he would argue that the control and management of smsf, fam and unit trusts remains in Australia, as Australian-based PMs manage our properties on daily basis, all accounting work is done in Australia too, etc.

This does NOT sound good just based on those facts.

Second opinion time ... too much at stake.

Cheers,

Rob