Financial / tax advice specialist for Aus / USA online business? Any recommendations?

[liquid2g]

Hi guys, it seems like a blessing to have found these forums!


I'm running a couple of online businesses over the last few years. I had been getting everything made and shipped from Australia, but have recently moved everything to the US (for cost and scale reasons)
So now, all of my manufacturing, fulfillment and shipping occurs in the USA, but since the business is registered in Australia, I'm still getting hit by a lot of tax here.

Is there a better way to do it?

Note that I will be moving overseas permanently soon and think it's a bit silly to be paying tax in Australia for a business that's operating from the US, especially if I'm not living in Australia.

Are there any specialists on this forum or that people can recommend I talk to? (I'm based in Sydney.)



many thank in advance
Luke

[Warren Cottis]

hello Luke

you started with an Australian based business (company?) operated by an Australian based owner (company shareholder?)... so standard stuff

however, if you are going to be a non-resident of Australia then you should not have an Australian based business so close it down and re-establish it in whatever country or tax jurisdiction that is the most advantageous for wherever it is you are going to live

you need advice from tax advisors wherever "there is" not here in Australia

BUT... if you are staying here (living here) and just moving your operations to the USA then you are still an Australian resident and subject to Australian tax ... in which case you should be talking to one of the major first or second tier accounting firms for some slick tax advice.

[liquid2g]

Hi Warren, thanks for the advice.

I will still be a resident of Australia, BUT I won't be living here for a number of years. (I'll be doing some very extensive traveling, funded by my mostly-automated business, but won't be in one fixed country.)

So, I won't be a resident of any other country, but won't be using the services which I pay tax for here in Aus...

[Accounts Studio]

I would check with an accountant but I would have thought if you are not moving to another country and working there, but travelling around, then technically you would still be having to pay tax here if your business is generating an income. The other option as mentioned would be to reopen the company in America but you would have to legally be able to work over there re visas etc. Best to talk to an accountant specialising in international businesses.

[Solo Lawyer]

Dear Luke

The key issue is your business structure. If you operate as a sole trader or partnership in Australia, then you would be subject to Australian tax. The same applies if you have an Australian registered company.

However, if you set up a company overseas, say in the US, you will pay company tax there. You will pay tax in Australia on dividends paid to you by the US company (if you set one up), but only if you are an Australian resident.

I don't think you would would be considered an Australian resident for tax purposes, if you are travelling overseas for a few years.

I agree with the advice form the other posts that you need to talk to an accountant. I would also suggest you have a look at the ATO website which has a section entitled "International Tax Essentials"

http://www.ato.gov.au/individuals/pa...58#001_002_012

I hope that helps.

Michael Terceiro
Solo Lawyer
www.terceiro.com.au

[Andrew Lowe]

Hi Luke,

I specialise in personal, corporate and international tax and have a number of clients who are expatriates. I've been reading through the comments and you have an interesting case here.

As Michael, Warren and 'Ideas Book' have stated, there are tax residency issues which are not as straightforward as you might think, particularly as it seems that you may be overseas for quite a while. Not only do you have to consider your residency status but also that of the business, which does depend to an extent on your business structure (whether here or USA).

From my experience, in some cases, despite your intention to remain a resident of Australia for tax purposes, you can be deemed to be a non-resident due to the circumstances.

There are also tax consequences of changes in residency (and back) so you really do need to make sure that you determine your residency status before you go overseas.

I'd be happy to have a chat and shed some light on your situation.

Feel free to drop me an e-mail or give me a call.

Cheers,
Andrew

Andrew Lowe
Director
CA ATIA M.Acc B.Com

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