moving money

[aussieItman]

Hi I am a contractor with a LTD company. WhenI do my company tax return I am a bit unsure about how much to declare for salary and dividends etc. I've been moving money out of the company account into an overseas higher interest account. Does taxman know what I've been up to or only if I get investigated?

[malvolio]

You could ask him? Actually, not such a good idea, he may get the silly idea that moving undeclared company money out of the country counts as tax evasion. Fancy a five stretch, do you?

Seriously, it's not wrong until you don't declare it or run 9 monhts off the end of the tax year. Talk to a real accountant and get it sorted.

BTW, Oz and UK tax laws apply recipricocity - screw them here, get prosecuted there. Have fun.

[meridian]

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BTW, Oz and UK tax laws apply recipricocity - screw them here, get prosecuted there. Have fun.

Do you have a cite available for this? Which of the Australian laws would allow prosecution in Oz?

[tim123]

Hi I am a contractor with a LTD company. WhenI do my company tax return I am a bit unsure about how much to declare for salary and dividends etc. I've been moving money out of the company account into an overseas higher interest account. Does taxman know what I've been up to or only if I get investigated?

Only if you get audited.

As a Ltd your chances of being audited are not insignificant and they will increase exponentially if your accounts don't add up. Which, of course, they won't if you have been taking money out and it isn't in the books as salary or advanced dividend. Fiddling the taxman as a small Ltd company is almost impossible, that's why he (the tax man) likes you to trade that way.

tim

[boredsenseless]

Do you have a cite available for this? Which of the Australian laws would allow prosecution in Oz?

I don't know the exact location but there is a list on the HMRC site of sites with taxation treaties between the UK and themselves, in any of these there are reciprocal agreements in place to allow the upset government to obtain their monies by legal action in the second country.

Its been known for ages that you can't run back to Oz with your cash so why are people still attempting it

[meridian]

I don't know the exact location but there is a list on the HMRC site of sites with taxation treaties between the UK and themselves, in any of these there are reciprocal agreements in place to allow the upset government to obtain their monies by legal action in the second country.

Its been known for ages that you can't run back to Oz with your cash so why are people still attempting it

If you mean the Double Taxation Treaties, the UK/Oz one is available at http://www.hmrc.gov.uk/pdfs/uk-australia-dtc.pdf

Nowhere in it is an agreement to allow a Contracted State to enter the other Contracted State to recover monies assessed - unless you mean another treaty?