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ATO and offshore payment stress

Discussion in 'General Discussion Forum' started by Dan, Jun 3, 2010.

  1. Dan

    Dan Administrator Staff Member Administrator 2016 Tipping Competitor

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    So i recieved a dreaded letter from the ATO today, and it really ruined my day and scared the bejesus out of me.

    As some of you may or may not know, I work for a US company, we have an office in Sydney, but largely remote employees, we have an ABN and business name etc, however all of our payments generally come out of the EU or wherever is cheapest at the time for our company.

    Most of this is handled by PWC.

    On top of that expenses are paid by us mostly in cash or on the company credit card for large amount, the company then just reimburses us, which is all good.

    I check with the ATO every year whether I need to claim those on my tax but because they are generally amounts here and there of no more than $300 at a time, that it is the companies thing to deal with and I don't need to worry about it....two accountants basically told me the same.

    Anyway this letter today, shows up and basically tells me, you have $x amount of undeclared income from offshore, please explain.

    Now this reaches into the 10's of thousands of dollars as it is my total income + reimbursements, with reimbursements being about $6k across the year in question.

    I have run into, I wont say trouble with the ATO, more difficulties in the past because of having an overseas employer and they way they have put together my PAYG, this was all sorted and in the end there was no penalty.

    But I can tell you that I am scared ****less with this one, given the amount they are claiming is undeclared (It was all declared as income apart from reimbursements) but I tell you, my accountant basically told me is, we can see it's pretty clear, but not sure they will :)

    Anyone else who gets from overseas as i do, you can probably expect a similar letter in coming days too.

    I will say however I rang the tax office to ask a few questions about what I had received and explained how i was paid, and the guy on the phone did say he has recorded this information and from what he can see, it looks like I will be fine and it is pretty clear cut, lets just hope their auditors think the same, or Silvertails might be up for fire Sale :)
     
  2. Zep

    Zep Active Member

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    I rang the ATO the other day and got of a few grands worth of fine, not undeclared income, but fines which was good.

    Good luck with Dan is all i can say, the ATO can either be real arseholes about things or really, we just sent you this notice to see if we can get some money from you.
     
  3. Dan

    Dan Administrator Staff Member Administrator 2016 Tipping Competitor

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    Jeez what did you say to get them to let you off of a fine?
     
  4. Guest

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    The ATO has been told to increase their tax collections so as to get the governments deficit down.  There will be a lot more tax audits in the next couplke of years.
     
  5. Dan

    Dan Administrator Staff Member Administrator 2016 Tipping Competitor

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    They just keep coming after me even though everything I do is legit. Lucky I keep everything in order, because I sniff an audit coming on
     
  6. ManlyBacker

    ManlyBacker Winging it Staff Member

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    I would audit anyone being paid out of Lichtenstein and routed through the Canary Islands. :) Man up and pay up haha

    I can't see you having any problem at all. Just make sure the expense reimbursement records are all there. If your company failed to forward any PAYG to the ATO - then that will be a big prob. I'd wish you good luck but I don't think you will need it. It is just annoying, that's all.
     
  7. Canteen Worker

    Canteen Worker Well-Known Member 2016 Tipping Competitor

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    You mightn't get fined, if it was a company error but you may have to pay tax and the income you received. That would be a big bummer. If they try that trick, ask to pay it in very small instalments over ages. After all, it isn't your error.
     
  8. Dan

    Dan Administrator Staff Member Administrator 2016 Tipping Competitor

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    No error involved. simple salary payments monthly + expense re-imbursements, so no idea why they cant piece 2 and 2 together given i have no other income coming into my account
     

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