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Refinance with foreign income- is there any link to the tax dept?

Discussion in 'Property Finance' started by Abooking, 10th Sep, 2015.

  1. Abooking

    Abooking Well-Known Member

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    nsw
    This year I re-financed with one of the big 4 banks. I advised them of my oz earnings and also my foreign income when applying for the loan.

    Do you think that the banks system would trigger a record to the ATO regarding the foreign income? I suspect that it would not but thought I would ask. Why would a bank's internal home loan system interface with an ATO system?

    The question is best answered by an employee of a bank who works in the I.T department... Its a long shot that I will be lucky enough to get an accurate answer in this regard, but if you can comment on this issue it is much appreciated.

    many thanks
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Only money from the black economy is tracked. The rest is legit. ;)
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I've got quite a few ex-pat clients earning money overseas, a lot of it tax free. Most of these loans have been full doc loans, which means all of their income is declared and proven to the bank with supporting paperwork. My relationship with some of these people goes back over 10 years, some have built huge portfolios over that time.

    I've never had a comment regarding the ATO due to disclosure by the banks.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If you are hiding overseas earned money from the ATO then they can check this by requesting a copy of the loan application from the lender. This happened to one of my clients.
     
  5. jrc

    jrc Well-Known Member

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    And how is the original poster answering questions 19 and 20 of the 2015tax return. If the foreign income is not assessablein Australia, then no doubt the original poster can substantiate that to the ATO
     
  6. Blacky

    Blacky Well-Known Member

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    Yes and no.
    While it is unlikely they will track it from your loan application, they will be able to track it from international bank transfers (in and out of the country).
    When I was audited by the ATO they kindly sent me a copy of the tracked incoming payments, compared it to my tax declaration, and confirmed the adjustment. It was then up to me to prove otherwise.
    In addition they asked the bank to provide my application detials (statements of income + any evidence which I had provided).

    If audited you will get caught out if you are doing something dodgy.

    In saying that if you are legitimately a non-resident for tax purposes, and are paying all taxes due (regardless of which country they are due) then there is no requirement for you to declare foreign income (only income generated in Australia is taxed).

    Blacky