Trading CFDs if you're not an Aussie citizen - tax implications?

[jiggy]

If you are not a aussie citizen and but you trade aussie cfds using an aussie cfd account you have opened when you were over here for say 2 months with aussie bank a/c etc.

What would be the tax implications for this? I was going to get my friend in Canada to trade cfd's and would assume he would not have to pay tax in australia or Canada cause the profits stay in the aussie bank account if and when transferred from the aussie cfd provider.

I read a rule if you don't reside in Australia for more than 6 months the profits are tax free. Is this true?? So if a friends was to use my money to trade cfd's no one has to pay any tax correct? As the profits never leave the country (Aust)??

 

[Whiskers]

Re: Trading CFDs if you are not an Aussie citizen - tax implications?

What's the rest of the story jiggy?

There seems no point making money and leaving it in a foreign bank account. Who is going to draw the money/profits and when? This will probably decide how it is treated.

 

[jiggy]

Well if its your money being traded by your friend who resides in canada or wherever but the profits stay here in Australia. ie transfered from cfd broker to the aussie bank account and don't leave the country then i would assum no one has to pay tax correct?

 

[Whiskers]

Well if its your money being traded by your friend who resides in canada or wherever but the profits stay here in Australia. ie transfered from cfd broker to the aussie bank account and don't leave the country then i would assum no one has to pay tax correct?

Ziggy, I'm a bit loath to comment, but there seems to be a couple of people promoting dubious tax minimisation and/or avoidance propositions, and I think it healthy to get some word of caution to not jump to conclusions, so I would suggest you read the link https://www.aussiestockforums.com/forums/showthread.php?p=210899#post210899 in full provided on the "CFD is not tax assessable" thread.

On face value I would suggest you are inviting a tax avoidance prosecution plus penalty plus GIC.

If you don't have a good accountant, you can go to the ATO web site http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/082&mfp=001&mnu=4278#001_003_082 and apply for a private ruling. It will cost you nothing and provided you describe your circumstances correctly, the ruling will be binding on the tax office.

While on the ATO site have a read of related tax rulings and the following links.

Aggressive Tax Planning
Investor advice.
Don't take the bait - dodgy schemes can come back to bite you.
Find out more about the joint international tax shelter information centre​

Then come back and tell us how you got on.