Registered Tax Agent Sydney

[Pell]

Can any one recommend a tax expert who will know about Australian and SA taxation?

I need help in completing my first Australian tax return and as I arrived in the middle of the tax year from SA, I think I need some advice.

Thanks in advance!

[greggle]

I don't know him and can't necessarily recommend him ... but I am aware of a guy called Michael Berman who is in Sydney.

As an ex-South African he may be able to assist your point you in the right direction:

http://www.dkfinancialplanning.com.au/about-us/

[monsta]

There is a double taxation agreement between RSA and Aussie. I.e you cant typically be taxed twice for the same income.

So, you fill in what you made in RSA on your RSA tax return and your Aussie income goes on your Aussie tax return.

If I am wrong there, I hope someone will correct me.

[Gerhardk]

Monsta is basically right with a few exceptions!

Depends on your tax residence (sometimes linked to your visa class) and type of income. But assuming you only earn salary then what you earned in SA will be taxed there and what you earn in Australia after you took up residence here will be taxed here so no double tax.

[ottg]

@GerhardK - if you can verify this scenario. If you are an Aus resident here and paying tax in Aus but you do financial immigration many years later the following happens. You get taxed by SARS on your annuities but when you transfer the funds, that becomes an income in Aus. This income is calculated at foreign income tax rates and then added to your personal income. The tax paid in RSA is deductible but any shortfall based on your marginal tax rates is not and payable to ATO. If you overpaid to SARS you cannot get a rebate in Australia.

However foreign income takes the exchange rate and TVM into account. If the funds materialized in 2000 and you bring it across 2015, the loss due to a devalued Rand gets taken into account and you may not be taxed (TVM needs to be calculated against foreign income tax rate) but the losses can not be deducted. Obviously if you have huge and multiple funds tax can be minimized by bringing it across in tranches and across two financial years. However do ensure that the SARS tax certificate also occurs across two financial years.

[Gerhardk]

ottg a few things here. In relation to your first paragraph basically 'Yes' but . . . in SA the full amount taxed in Australia only the increment since you became a tax resident in Australian (assuming you did not contribute any more after you became a tax resident). Yes on overpaid SARS. But you can avoid it being added to taxable income here if you contribute to Super (though there will be Super contribution tax).

Regarding second paragraph, since the first taxing event is in 2000 it will be dealt with at that point depending where you are a tax resident (s). Any growth on this capital sum should be a second taxing event usually annually in most cases in both countries. Such as interest on the withdrawal. Assuming the growth in the two scenarios are the same then the tax in Australia should be more or less the same (scenario in paragraph one vs paragraph two) but for the yearly exchange rate that will influence the second scenario but not really the first scenario. Your statement about two tax years may have merit if it relates to the increasing marginal tax rate. Maybe run some numbers and pass to me and I can confirm for you.

[ottg]

I know when I do need an accountant - will PM you. My personal scenario is related but different!

[Pell]

Gentlemen, this is why I don't do tax, even though I'm a CA.

Many thanks to both of you!