Does anyone here have international bank accounts? I have an international bank account from USA I to date have never used.
I am wondering if anyone has any experience with these types of accounts. It has an internet banking facility and it also pays interest.
I know in the united states people dont really pay a lot (if any) tax on bank interest. If I transfer money from AUS into my offshore
account would I not have to pay any tax on my interest? I dont really imagine they would share information with other countries so
in that respect I think that would be a loophole in the system which would enable people to get up to all sorts of things.That's an interesting question – and I'd be keen to find out the answer too.
From my understanding, Australia and US have a tax agreement in which you will have to be taxed in either US or AUS, but not both simultaneously for the same particular income.
I think you'd have to pay the tax in either of the countries. Although, I'd advise you check with your accountant.
If you are an australian resident then you would have to pay tax on it – or declare the overseas income. You would generally get a credit for any tax paid over there so you wouldn't be taxed double.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Does centrelink know if you have money in your international account? People may transfer money overseas to keep getting payments or start getting payments as overseas banks may not share information with foreign governments.
Peter
Peter456 wrote:Does centrelink know if you have money in your international account? People may transfer money overseas to keep getting payments or start getting payments as overseas banks may not share information with foreign governments.
Peter
Nope. The would not have access. But AUSTRAC records every transfer of money sent overseas and Centrelink, ATO etc would have access to this.
Taking cash up to $10k overseas, per person, is not required to be reported either.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I know centrelink can access easily information about people who have money in any bank account in Australia. At least for sure
those accounts which are receiving payments but also perhaps any account linked to the name of a person receiving payments
by doing a data scan. This is all only relatively recent like since about 2008. They can scan Australian bank accounts of people receving payments by doing a computer search. But if you had an international bank account you may be able to gradually transfer money into your international account and I am guessing perhaps they would be less likeley to find hits on AUSTRAC unless they were looking into a case of somebody specifically. For example, if I have 100,000 in cash I may gradually transfer that into a offshore account $5000 at a time. This way I am trying to make sure I dont ring any alarms by keeping my transfers under $10,000.
I think in the states they dont pay any tax on bank interest last time I heard. Generally over $10,000 transfers for anything ring alarm bells at the tax office, so as a general rule, keep them under that amount. I also would not go trusting any bank from overseas to begin with. You need to do your research on the bank to make sure they are not a scam or fraud. You can do this initially by doing reaseach on them and also by using them with only small amounts of money to begin with.I am thinking this is all the stuff you mean to suggest the account may enable people to get up to
Peter
Yes thats right. I wasnt suggesting using that means to shortcut centrelink tho. I was merly just curoius. I tried opening a internationalbank account with HSBC and they said the australian government banned the use of these types of accounts with them.
I know in the states they pay a lot less tax on bank interest. It might be perfectly legal to transfer money overseas and pay tax in another country.
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