Overseas Fund Income Taxed

Discussion in 'Accounting & Tax' started by Mike A, 14th Mar, 2020.

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  1. Mike A

    Mike A Accountant Business Member

    24th Jun, 2015
    Bob's mate Dragov finds out the money he receives from his overseas fund is taxable in Australia.

    Why is that ?

    Dragov has an account with a fund overseas. Dragov and his previous employers made equal contributions to the account on a monthly basis.

    Dragov became an Australian resident for tax purposes in the early 1990s.

    In 2019 Dragov was advised by the governing body of the fund that as he was turning 70 you will be eligible for a monthly payment of $3k per month.

    The amount received from the Fund is not taxed in the overseas country.

    However Dragov finds out he is taxed on the money here in Australia
  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    18th Jun, 2015
    Yet his mate Frankof have moved to the USA for 3-5 years. Frankof buys and sells some parcels of Australian shares in the time and pay no Australian tax. He also holds his ETFs which pay some franked income, CGT amounts and AMIT tax deferred amounts. None of it is taxed in Australia.

    Frankof and Dragov discuss this and are both confused.