Do you know that you can get taxed by the ATO for income derived by an offshore trust before your arrival here but distributed to you after you became an Australian resident?
Australian tax residents are liable to tax on worldwide income. As a result, distributions received from foreign trusts may be assessable in the hands of Australian resident beneficiaries.
For example, you receive a distribution from an overseas trust to purchase your dream home in Australia.
You may find the money is insufficient if it comes up short as a result of potentially large tax bills attached to that distribution even though the profit was derived by the trust long before you came to Australia. This disastrous outcome can be avoided by active tax planning.
For more information, visit our international tax page or contact Matt Zhou to discuss your circumstances.
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