Setting up a Swiss bank account from Oz: UBS or Credit Suisse or?

[Solly]

I had a feeling that was the case.

Also re 1, I wonder how our good buddy ATO would know? I created an overseas account recently and don't recall giving out my TFN.

Aust has tax information exchange agreements (TIEAs) with most jurisdictions now, so no TFN required. If you've identified yourself to that financial institution as having an Aust address and that institution is in one of those jurisdictions, you are already in the club !

Don't forget that the ATO can slap an 'offshore information notice' on you if they have reasonable belief that more details are required to conduct an assessment relating to offshore income.

There are only a handfull of jurisdictions now that have that have secrecy provisions and do not participate in TIEAs. I wont name them here, as I hold a dim view on those who participate in tax avoidance and evasion.

S

 

[McLovin]

There are only a handfull of jurisdictions now that have that have secrecy provisions and do not participate in TIEAs. I wont name them here, as I hold a dim view on those who participate in tax avoidance and evasion.

S

I can think of a fair few off the top of my head. Although, most of the UK dependencies and colonies have been brought into line.

I would think that sending any sort of non-trivial amount to the countries I'm thinking of would trigger a red flag in Australia.

 

[So_Cynical]

So what, if I move to Switzerland, I still have to pay tax in Australia?? Doesn't make sense.

The rich country's tend to Tax money where ever its from and the poor country's tend to not tax money that is made off shore.

 

[Tyler Durden]

Aust has tax information exchange agreements (TIEAs) with most jurisdictions now, so no TFN required. If you've identified yourself to that financial institution as having an Aust address and that institution is in one of those jurisdictions, you are already in the club !

Don't forget that the ATO can slap an 'offshore information notice' on you if they have reasonable belief that more details are required to conduct an assessment relating to offshore income.

There are only a handfull of jurisdictions now that have that have secrecy provisions and do not participate in TIEAs. I wont name them here, as I hold a dim view on those who participate in tax avoidance and evasion.

S

Very interesting, thanks for that. I suppose the next issue is, how is the interest/income calculated in terms of currency? I mean, if I earn $1USD, then what conversion rate is used when I am doing my tax return?

Sorry if this is hijacking thread

 

[Solly]

Very interesting, thanks for that. I suppose the next issue is, how is the interest/income calculated in terms of currency? I mean, if I earn $1USD, then what conversion rate is used when I am doing my tax return?

Sorry if this is hijacking thread

Tyler

You need to get specific advice for your circumstances regarding the 'general translation rule', this determines when and how the conversion to Australian currency is deemed to have occurred for assessment purposes.

S

 

[DB008]

Off topic Q, but still part of the whole tax question at large.

A friend told me that if you live outside of Australia for more than 50% of the year, you pay no tax. He splits his time in Australia, Singapore and the USA.

He is a Australian citizen/resident and is based here, but does a lot of travel for business around the world (and the 3 places l named above).

Is this true?

I clicked on the ATO link above;

As Australian residents are taxed on their worldwide income, they must report all relevant foreign income in their Australian income tax return. However some foreign-source income of Australian residents may be exempt from Australian tax. For example:

some employment income derived by an Australian resident working overseas

Looks like there is some truth to my mates statement. Where can l find more info on this?

 

[Solly]

Off topic Q, but still part of the whole tax question at large.

A friend told me that if you live outside of Australia for more than 50% of the year, you pay no tax. He splits his time in Australia, Singapore and the USA.

He is a Australian citizen/resident and is based here, but does a lot of travel for business around the world (and the 3 places l named above).

Is this true?

I clicked on the ATO link above;


Looks like there is some truth to my mates statement. Where can l find more info on this?

Dannyboy

You may wish to seek further advice on the "183 day rule"

http://www.ato.gov.au/content/36270.htm

S

 

[DB008]

Cheers Solly.
I'll ask my friend some questions when l see him next, he's out of the country at the moment, lol...

 

[McLovin]

Cheers Solly.
I'll ask my friend some questions when l see him next, he's out of the country at the moment, lol...

The 183 day rule is only one test that is used. You can also qualify under the domicile or superannuation test.

Personally, I think if you went down the path your friend has, you'd want to have some pretty strong legal advice backing up your decision. Simply being out of the country for more than 183 days won't necessarily change your domicile. One of the first things the ATO would look at, is does your friend pay tax anywhere else.

 

[Glen48]

If you wanted to invest some money etc over seas all you have to do is fly there do the deed and fly back, leave every thing in a safety deposit box and come back a few time a year if you like or let it sit there until you decide on your next step.

 

[skc]

The 183 day rule is only one test that is used. You can also qualify under the domicile or superannuation test.

Personally, I think if you went down the path your friend has, you'd want to have some pretty strong legal advice backing up your decision. Simply being out of the country for more than 183 days won't necessarily change your domicile. One of the first things the ATO would look at, is does your friend pay tax anywhere else.

Clear your PMs.

Sorry to divert the thread.

 

[McLovin]

Clear your PMs.

Sorry to divert the thread.

They be clear...

 

[DB008]

Here is a very interesting article on Bloomberg about Swiss banking.

http://www.bloomberg.com/news/2012-03-19/swiss-secrecy-besieged-makes-banks-fret-world-money-lure-fading.html

Switzerland and its banks benefited from laws protecting secrecy. The inflow of foreign money seeking a haven in the country contributed for decades to lower interest rates, making borrowing and expansion cheaper for domestic companies and boosting household wealth. Now, what promises to be the biggest shake-up Swiss financial firms have seen in 80 years is bound to leave scars on the economy.

“The problem with any good thing is that it’s too good to be true,” Gruebel said in an interview this month. “If you have that for too long, there comes a day when it falls apart. And that’s the case with bank secrecy.”

Tax Evasion

The government has been in talks for more than a year with U.S. authorities, who after getting data on about 4,700 UBS clients are now investigating 11 other banks, including Credit Suisse, for alleged assistance in tax evasion.

Wegelin & Co., a 270-year-old Swiss bank, had to sell itself to save its non-U.S. business before the U.S. indicted the firm last month. Philipp Hildebrand, head of the Swiss central bank, had to step down in January after information about his wife’s foreign-exchange transactions was leaked by a Bank Sarasin & Cie. AG employee. Bank secrecy has become a point of mockery: A photograph in Neue Luzerner Zeitung featured a masked man at a carnival last month offering “cheap” Swiss client-account data on a compact disc as a “special offer.”

 

[Calliope]

The flight to safety. Investors are now paying the Swiss government to borrow their money.

Swiss bonds were returning a negative yield during trading today as the country's government sold 6 month paper at -0.148%.
It means investors would receive less money than they paid for the bonds when they mature

Read more: http://www.investmentweek.co.uk/inv...nd-yields-negative-market-panic#ixzz1waOKa7nv

 

[Glen48]

Wait for gold and Silver to tank and buy up big somewhere around $1400 or less for gold.