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backtobasics
08-07-2006, 03:00 PM
I have a question on Capital Gains Tax:

"If you are an Australian resident do you have to pay CGT just on shares you sell on Australian registered companies or do you need to declare it for say companies registered in New Zealand or England"

Look forward to your advice.

Thanks:)
backtobasics
08-07-2006, 09:59 PM
No really, thanks for all your assistance. It's great to know that so many people on this forum are happy to assist others.
Year of the Tiger
08-07-2006, 10:48 PM
quote:Originally posted by backtobasics

No really, thanks for all your assistance. It's great to know that so many people on this forum are happy to assist others.


Hi backtobasics.. Sorry I don't have the knowledge to give you an exact answer your question however I just want to point out that today is Saturday, the day lots of people want to get away from what they do during the week and spend time with families, sport etc etc...

I'm sure you will get some response to your query from some very knowledgeable people, just please give them a chance to have a weekend.

I find this sight very helpful and the posters are very happy to help out... just give them time to have a break...
backtobasics
08-07-2006, 11:10 PM
quote:Originally posted by Year of the Tiger


quote:Originally posted by backtobasics

No really, thanks for all your assistance. It's great to know that so many people on this forum are happy to assist others.


Hi backtobasics.. Sorry I don't have the knowledge to give you an exact answer your question however I just want to point out that today is Saturday, the day lots of people want to get away from what they do during the week and spend time with families, sport etc etc...



Yeah sorry I don't have a life and I forgot other people do.

Hope to hear from someone during the week.

Cheers
backtobasics
10-07-2006, 02:54 PM
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stevieb
10-07-2006, 06:37 PM
Sorry to say but if you are Australia resident they try and tax you on your income anywhere in the world. There is a specific exemption for salary in other coutries (only where it is taxed and not in a low-tax jurisdiction) but for CGT it's on world wide assets.

http://www.ato.gov.au/individuals/content.asp?doc=/content/36546.htm

Extract below
Australian residents make a capital gain or capital loss if a CGT event happens to any of their assets anywhere in the world. As a general rule, non-residents make a capital gain or capital loss only if a CGT event happens to a CGT asset that has a necessary connection with Australia.
backtobasics
10-07-2006, 07:37 PM
quote:Originally posted by stevieb

Sorry to say but if you are Australia resident they try and tax you on your income anywhere in the world. There is a specific exemption for salary in other coutries (only where it is taxed and not in a low-tax jurisdiction) but for CGT it's on world wide assets.

http://www.ato.gov.au/individuals/content.asp?doc=/content/36546.htm

Extract below
Australian residents make a capital gain or capital loss if a CGT event happens to any of their assets anywhere in the world. As a general rule, non-residents make a capital gain or capital loss only if a CGT event happens to a CGT asset that has a necessary connection with Australia.


Yeah but surely you would not have to pay CGT on shares that you purchased before you became an Australian Resident?
OneUp
10-07-2006, 07:50 PM
quote:Originally posted by backtobasics
Yeah but surely you would not have to pay CGT on shares that you purchased before you became an Australian Resident?


I'm not a tax expert, but I would be amazed if you did not have to pay it. Afterall, you're no longer resident in your home country so (I assume) you're no longer paying home country CGT. So are you saying you expect neither your home nor adopted country to tax you? No free lunches.
backtobasics
10-07-2006, 08:19 PM
quote:Originally posted by OneUp


quote:Originally posted by backtobasics
Yeah but surely you would not have to pay CGT on shares that you purchased before you became an Australian Resident?


I'm not a tax expert, but I would be amazed if you did not have to pay it. Afterall, you're no longer resident in your home country so (I assume) you're no longer paying home country CGT. So are you saying you expect neither your home nor adopted country to tax you? No free lunches.


New Zealand doesn't have Capital Gains Tax. Free lunches all around.
OneUp
10-07-2006, 08:52 PM
NZ has a CGT for traders.
backtobasics
10-07-2006, 09:59 PM
quote:Originally posted by OneUp

NZ has a CGT for traders.



Yeah but I'm not a trader. I've held the shares for over 10 years. Why should I pay CGT in Australia when I bought the shares years before I moved to Australia?
backtobasics
11-07-2006, 01:40 PM
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stevieb
11-07-2006, 06:42 PM
Sorry, have not come back and looked at this page. You've got half good new here.

Here are a couple of ATO pages that might help. First is general info but has links to relevant pages

http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/012&mfp=001/002&mnu=1113#001_002_012

However more relevant info for you in included here. This specifically covers chnage in residency status, in your case becoming resident in Aus and the impact of Capital Gain. Certainly you are not liable for the Capital Gains for period when you were not in Australia but you are taken to have acquired the assets at market value as and when you become resident. So you need to make sure you establish a value (higher the better) on arrival. Hope this helps.

http://www.ato.gov.au/individuals/content.asp?doc=/content/64155.htm&pc=001/002/012/014/003&mnu=1113&mfp=001/002&st=&cy=1

Changing your residency status

There are CGT rules that apply when you become or cease being a resident of Australia for tax purposes. These rules do not affect pre-CGT assets.

Becoming a resident

If you become a resident you are taken to have acquired certain assets at the time you became a resident – specifically, those assets that do not have a necessary connection with Australia. You are taken to have acquired the assets for their market value at that time. This does not apply to assets you acquired before 20 September 1985 (pre-CGT assets) and assets that have the necessary connection with Australia.

The general rules apply to any assets that had the necessary connection with Australia (for example, land in Australia) regardless of your residency status.