Using Australian company for Stripe set up, depositing into Payoneer which is linked to BVI company

[ReviewRumble]

I have an Australian company and a BVI company. I want to use the Australian company to set up a payment gateway like Stripe or Airwallex, and have those gateways deposit the funds into Payoneer which is under a BVI company. Do you think I will be liable for GST for funds collected through the Australian company when the entire amount is deposited directly into the BVI controlled company? The company is a simple marketing company - nothing dodgy.

 

[Sols]

I've seen similar arrangements elsewhere where the equivalent of GST has not been applicable. In those cases, the company collecting payment is a subsidiary or group company of the offshore entity. It's also important that a carefully worded service agreement exists between the two companies.

If the supply of services happens from BVI (or from another place than Australia) and the Australian company exists only to receive payments on behalf of its parent company, it's possible you wouldn't be liable for GST. But if you for example live in Australia, that might complicate matters since it probably makes the BVI company tax resident in Australia.

Ultimately, though, this is a question you'd want to run by an Australian tax lawyer if you want certainty.