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James Millar
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Paul – FS Concierge, post: 261108, member: 78928 wrote:
I had this set-up when I owned US and Canadian websites that generated income – I paid my tax to the ATO, not the IRS.

That said, on the US side, you still have an obligation to file a tax return and you will be credited by the IRS with taxes paid in Australia.

All, of that said however, I could not tell you how many people actually meet all of their obligations but it is important to have the correct info before making decisions that could have future implications.

That’s all pretty spot on Paul. The only thing I would add is that the ATO is getting better at targeting all levels of tax avoidance. In the last five years they have quietly built a massive data gathering and matching regime which collects data from a large variety of sources automatically. In the past this information was simply not available. So these days the ATO are data matching banking information automatically and comparing with your EFT merchant income (including PAYPAL). They also cross check state vehicle registers and state land titles registers to ascertain what assets you are buying and whether your income supports it. In the near future there really will be no hiding.

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