Extending that on the personal level. If you incorporate locally and then flip-up later to a delaware (with yr pty shares shifting to the .inc shares) it should not generally be considered a cgt event. You need to get advise at that time though based on valuations. Similar on acquisition under 'scrip-for-scrip' rollover. This means as an oz entrepreneur you should not be penalised or reset the age of you asset holding but you do need to get advise and don't use a suburban lawyer/accountant - the biggies have international tax practices but there are some slightly cheaper options. Naturally if you do go delaware from the get-go its simpler - think about where the business will go b4 doing the pty ltd.
On Dec 10, 2008 2:28 PM, "Elias Bizannes" <[EMAIL PROTECTED]> wrote: This is a simple thing, but worth pointing out. The Capital Gains legislation is the same Act of parliament that is the Income Tax Act (ITAA 1936 and 1997). So it's simply an extension of it, rather than a separate piece of legislation. You ultimately pay capital gains at your marginal tax rate; what makes it different from regular income, is in the actual calculation of the capital gain. So with that in mind, yes that is correct - an Aussie is taxable even if they are located offshore. If you are a resident of Australia for tax purposes (different from being a citizen), you are assessable on all your sources of income. However a non-resident of Australia is still taxed on Australian source income. The issues surrounding your "residency" and "source" get complicated so won't bother explaining more - but will flag that double tax agreements do vary but don't do much sometimes because even if you pay (lower) tax in an overseas country, you still might have to pay the "residual" tax in Australia assuming you were fully taxed here. When talking about companies, it's slightly different. Under the definition in s. 6(1) ITAA 1936, a company is resident in Australia if it is:1. incorporated in Australia or 2. not incorporated in Australia but carries on business in Australia and > central management and control is based in Australia *or* > its voting power is controlled by Australian residents As for the comment about CGT event being triggered - section 104-5 has a comprehensive list of what triggers CGT. For example, changing your residency from Australian or non-Australian would be an event; disposing of an asset is an an event; creating a contractual right is also an event. The way the legislation works is that it has these broad catch-all principles, but in the case where there are two or more events, you need to go with the one that is most specific. Determining what event matters, because it ultimately affects your CGT calculation. On Wed, Dec 10, 2008 at 1:20 PM, Jason Langenauer <[EMAIL PROTECTED]> wrote: > > > I would h... Elias Bizannes http://liako.biz --~--~---------~--~----~------------~-------~--~----~ You received this message because you are sub... --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Silicon Beach Australia" group. To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en -~----------~----~----~----~------~----~------~--~---
