I am planning to open individual offshore bank account about Capital Gain Tax.

[12point]

Hello, I'm just new here,

I am a forex trader and I usually make huge profits but my concern is Capital Gain Tax in Australia.

I am currently living in Australia(but I'm not Aussie) and I have a commonwealth bank of Australia account. If I withdraw my profits from the Fx broker account to my personal commonwealth bank account, I have to pay around 30% tax as a capital gain tax...

I definitely hate that.

That is why I am planning to open an individual offshore bank account with Caye International Bank in Belize which is one of the tax haven countries...


my questions

1. if I move all of my profits from the current my fx broker's account even my future incomes to my offshore bank account and then wire transfer to my resident account, do I still need to pay taxes in Australia?? Basically, I made incomes in Belize not in Australia right??

2. If I still need to pay it, I will not wire transfer to my current resident account here, but instead of that can I purchase properties or cars via my offshore bank account as international wire transfer?? (without mortgage ..because If I get loans or mortgage..they will check the fund recourse)

ex) FX broker accounts(profits) - my Offshore bank account -(wire transfer)- purchasing properties & cars (O)
FX broker accounts(profits) - my Offshore bank account - my resident (commonwealth bank) account - purchasing properties& cars (X)

3. If I use an offshore bank linked prepaid visa card for my living price, are there any problems with ATO(Australian tax office)??

4. Any other best ways?????????



Cheers,

 

[Camille Württemberg]

1. No, the source of your income will be treated as Australian.
2. Yes you can, but you will still have a tax liability in Australia.
3. Yes.

Your only way is to setup a company in a low-tax jurisdiction and have enough substance to justify the taxation taking place there. Ultimately this will depend on the amount of P&L that you generate.

 

[12point]

1. No, the source of your income will be treated as Australian.
2. Yes you can, but you will still have a tax liability in Australia.
3. Yes.

Your only way is to setup a company in a low-tax jurisdiction and have enough substance to justify the taxation taking place there. Ultimately this will depend on the amount of P&L that you generate.

Thank you for your reply!

But still curious that how they will know my income in Australia?? As I mentioned, I will directly move all my profits to my offshore bank account which means they cannot track where the money will go ...

 

[Camille Württemberg]

Thank you for your reply!

But still curious that how they will know my income in Australia?? As I mentioned, I will directly move all my profits to my offshore bank account which means they cannot track where the money will go ...

Australia is part of the CRS exchange of information, so the Belize bank will automatically send out your bank statement to the Australian tax office on a daily basis.

 

[12point]

Australia is part of the CRS exchange of information, so the Belize bank will automatically send out your bank statement to the Australian tax office on a daily basis.

Right....CRS... so sorry for a lot of questions,



What if I am holding a Panama permanent residency as my second residency?? And if I move income to Panama bank account?? Do I still need to pay tax in Australia or in Panama?!

 

[Camille Württemberg]

It will depends on the double taxation agreement between Panama and Australia... Usually of you spend 180+ days in Australia and 0 in Panama you will still be liable in Australia.

The only difference is the bank might send your paperwork to Panama instead of Australia

 

[Sols]

In Australia, you have AUSTRAC, which is known as one of the best and most aggressive financial intelligence units in the world. I wouldn't waste my time trying to evade Australian taxes.

Australia is more aggressive than just a 180-day rule. It is very easy to qualify as tax resident in Australia. If you have ties to Australia and can't prove that you have a permanent home outside of Australia, the ATO is going to demand payment.

Take some of your hard earned money and spend it on getting solid tax and legal advice from a local tax adviser. It seems most people who look for offshore solutions haven't fully explored the local methods of legally structuring their setup and reducing their tax burden.

 

[Gediminas]

Hello, I'm just new here,

I am a forex trader and I usually make huge profits but my concern is Capital Gain Tax in Australia.

I am currently living in Australia(but I'm not Aussie) and I have a commonwealth bank of Australia account. If I withdraw my profits from the Fx broker account to my personal commonwealth bank account, I have to pay around 30% tax as a capital gain tax...

I definitely hate that.

That is why I am planning to open an individual offshore bank account with Caye International Bank in Belize which is one of the tax haven countries...


my questions

1. if I move all of my profits from the current my fx broker's account even my future incomes to my offshore bank account and then wire transfer to my resident account, do I still need to pay taxes in Australia?? Basically, I made incomes in Belize not in Australia right??

2. If I still need to pay it, I will not wire transfer to my current resident account here, but instead of that can I purchase properties or cars via my offshore bank account as international wire transfer?? (without mortgage ..because If I get loans or mortgage..they will check the fund recourse)

ex) FX broker accounts(profits) - my Offshore bank account -(wire transfer)- purchasing properties & cars (O)
FX broker accounts(profits) - my Offshore bank account - my resident (commonwealth bank) account - purchasing properties& cars (X)

3. If I use an offshore bank linked prepaid visa card for my living price, are there any problems with ATO(Australian tax office)??

4. Any other best ways?????????



Cheers,

Hi,

I would be more than happy to offer a free call where we could discuss your situation and possible solutions.

Feel free to email me and discuss it further.

 

[LouisB]

Thank you for your reply!

But still curious that how they will know my income in Australia?? As I mentioned, I will directly move all my profits to my offshore bank account which means they cannot track where the money will go ...

The broker that you use automatically reports (at least this is valid for most brokers out there, unless they are located in AEIO country) all your trading activity so that the tax authority will know about your trading much more than just "net profit" in the wire transfer

 

[12point]

In Australia, you have AUSTRAC, which is known as one of the best and most aggressive financial intelligence units in the world. I wouldn't waste my time trying to evade Australian taxes.

Australia is more aggressive than just a 180-day rule. It is very easy to qualify as tax resident in Australia. If you have ties to Australia and can't prove that you have a permanent home outside of Australia, the ATO is going to demand payment.

Take some of your hard earned money and spend it on getting solid tax and legal advice from a local tax adviser. It seems most people who look for offshore solutions haven't fully explored the local methods of legally structuring their setup and reducing their tax burden.

The broker that you use automatically reports (at least this is valid for most brokers out there, unless they are located in AEIO country) all your trading activity so that the tax authority will know about your trading much more than just "net profit" in the wire transfer

Thanks all, my conclusion that I will withdraw all my current profits from the current forex brokers(I'm using 3 brokers) and I will clearly pay taxes these profits.

Then I will close and remove all my current broker's accounts which I registered and verified with Australian issued Photo ID.


1. I will get permanent residency in Panama (I already hired local immigration lawyer in there) also, quite easy to get as friendly nations visa.


2. After getting permanent residency there, I will open a personal bank account there.


3. I will re-open and verify with Panama issued ID on 3 brokers accounts that I am currently using.


4. Make profits and withdraw to Panama personal accounts!


5. No need to pay taxes, my lawyer said that Panama is a territorial tax system so any income I earn outside of Panama is not taxed.


6. Enjoy it !!!!.

 

[Konstanz]

Thanks all, my conclusion that I will withdraw all my current profits from the current forex brokers(I'm using 3 brokers) and I will clearly pay taxes these profits.

Then I will close and remove all my current broker's accounts which I registered and verified with Australian issued Photo ID.


1. I will get permanent residency in Panama (I already hired local immigration lawyer in there) also, quite easy to get as friendly nations visa.


2. After getting permanent residency there, I will open a personal bank account there.


3. I will re-open and verify with Panama issued ID on 3 brokers accounts that I am currently using.


4. Make profits and withdraw to Panama personal accounts!


5. No need to pay taxes, my lawyer said that Panama is a territorial tax system so any income I earn outside of Panama is not taxed.


6. Enjoy it !!!!.

You would also have to cut all your personal and economic ties with Australia. You would have to live in Panama most time of the year. Rent house/apartment. Move your wife/kids to Panama etc etc. It's not that simple. If you do not cut ties with Australia and remain in Australia, they still can tax you in Australia despite this "paper" residency in Panama...

I strongly advise you to hire tax advisor in Australia..

Here are rules of Australia tax residency:
https://www.ato.gov.au/Individuals/international-tax-for-individuals/work-out-your-tax-residency/