Obligation to report foriegn income

[FAT_AUSSIE]

Hi guys.

 

As I understand it, if I as Australian citizen work abroad and earn an income taxed in that country then I have an obligation to report that income to the ATO. That's my perception anyhow.

 

What about the other way around?

 

If my wife was to earn an income here in Australia as a Thai citizen, report to the Australian tax office and subsequently pay tax in Australia. Would she then have an obligation to report that income to the dept of revenue in Thailand?

 

Fats...

[elef]

If you move from the country where you're citizen you must check if you're still regarded as a resident. In some countries like Sweden you're that if you own land, buildings and companies. The american citizens must always pay tax in USA as long as they're citizens but that's not upheld 100 %. So you must start with checking your internal tax legislation to determine your tax status after emigration.

 

Thailand - never heard of any such claims from Thailand.

 

Between most countries there exist tax treaties which regulate the taxation for a citizen of one country living in the other.

 

[samak]

if she is less than 180 days during one year in Thailand, she does not need to pay tax in Thailand nor report anything to the tax authorities

[cardinalblue]

Not quite sure what you mean "not upheld"...

 

If The US IRS knows that you owe income on foreign monies earned and you qualify to pay, why then would they not follow through?

 

Do you mean variance or exception?

 

CB

[Nervous_Dog]

As a Aussie as long as I am out of Australia 182 days in the year, then it's ok. Give a quick call to OTA.

 

They also have dual taxation with most countries, so IF you paid tax already then you prob wont in Australia.

 

When I first took up expat work OS I wrote to OTA and got them to acjknowledge I was leaving the country as a resident.

 

DOG

[elef]

CB,

 

if you study international tax law and tax laws in different countries they are based on some principles, but american tax law is based on an unique rule. However in practise the difference is not so big as that rule isn't applied more than is certain cases.

 

To give an more understandable example, according to US law the citizens of USA are not allowed to smoke a cuban cigar - I think the penalty is a fine of 5,000 USD. It doesn't matter wherever you live in the world, if you've a double citizenship or never been in the USA. Still you can read about movie stars traveling to Cuba for buying cigars and you can buy cuban cigars all over the US.

[cardinalblue]

I would think if sufficient amount of money is involved, the IRS does go after individuals or companies whether foreign income or not...

 

Sure, the IRS might not have the resources to audit most cases, but they do have a random system as well as red flag cases to keep their staff busy...

 

I can see the cigar example as being inconsequential. Just like litter cases but you get a case of hazardous waste dumping, and EPA, state health depts, water disticts, air boards, county DA's, etc will be on it without question...

 

As we know, one is still a good bet that tax invaders/cheaters can away with improper filing. Just insufficient staff to handle the supply so minor infractions will not be handled or receive a low priority....

 

CB

 

 

[ThaiHome]

I am at a loss at to what your point is. Your Cuban cigar example is meaningless as there is no law against a US citizens smoking a Cuban cigar, even in the US, much less anywhere in the world. Importation of Cuban-origin cigars and other Cuban-origin tobacco products is prohibited. It is also illegal for U.S. persons to buy, sell, trade, or otherwise engage in transactions involving illegally-imported Cuban cigars.

A law prohibiting smoking a certain type of cigar anywhere in the world would be ruled unconstitutional in a heartbeat as that is outside the scope of the Federal Government as defined in the US Constitution.

TH

[elef]

US Treasury

 

Transactions Involving Cuban-Origin Goods in Third

Countries

The question is often asked whether United States citizens

or permanent resident aliens of the United States may

legally purchase Cuban origin goods, including tobacco and

alcohol products, in a third country for personal use

outside the United States. The answer is no. The

Regulations prohibit persons subject to the jurisdiction of

the United States from purchasing, transporting, importing,

or otherwise dealing in or engaging in any transactions

with respect to any merchandise outside the United States

if such merchandise (1) is of Cuban origin; or (2) is or

2 has been located in or transported from or through Cuba; or

(3) is made or derived in whole or in part of any article

which is the growth, produce or manufacture of Cuba. Thus,

in the case of cigars, the prohibition extends to cigars

manufactured in Cuba and sold in a third country and to

cigars manufactured in a third country from tobacco grown

in Cuba.

 

Source

[Nervous_Dog]

Doesn't say you can;t smoke em though!