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Bank Account after renouncing SG-ship

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Re: Bank Account after renouncing SG-ship

Postby sundaymorningstaple » Mon, 18 Feb 2019 12:12 am

Sadly, this board isn't a mutual masturbation society. We are here to give you the facts as we know them. It's not a feel good society but a place to gain knowledge, even if it goes against what you want to hear. We are always open to new suggestion or facts as they change. It's what we do.

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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Mon, 18 Feb 2019 9:33 am

I think Cohen one answer if you have a significant CPF account is to use a stepping stone country where is no tax levied on a CPF withdrawal before becoming resident in a high tax country such as Australia.
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Mon, 18 Feb 2019 2:00 pm

Thanks PNGMK,

I appreciate your earnest in providing your perspective.

St the moment, to declare yourself non-resident of Aus, you need to be away at least 2 years and establish domicile elsewhere. It is not an option for me, unfortunately.

I have already spoken to 4 accountants about this. Each of them have a differing perspective which is really unsettling. So even if I engage one, there is no way to know to know if his/her interpretation is right. That is, until the enquiry letter comes.

It now remains to be seen what happens when I finally transfer the amount.

And yes agreed, I am not looking in this forum for misinformation to deceive myself. Just to arm myself with the right info.

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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Mon, 18 Feb 2019 5:27 pm

Personally I would take the approach that mistakes are permitted in a tax form for a person who files his own paper work, hene I would not declare it (as some accountants believe you don't have a liability) and then ask for a ruling if the ATO disagree.

Note that accountants in Australia are NOTORIOUSLY conservative as they don't want to be pinged by the ATO and in essence they act as a defacto arm of the ATO if they lodge your return! The way I get CPA advice is to buy a friend who is a CPA a beer, talk off the record and then do my own returns.
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Mon, 18 Feb 2019 5:52 pm

Hi PNGMK,

It’s funny that I don’t have any accountant friends. I may ask if any of them have any accountant friends. May be big ask. Don’t know until I try, right ?

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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Mon, 18 Feb 2019 8:56 pm

Essentially you won't get any leeway if an accountant files your return.
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Tue, 19 Feb 2019 12:09 pm

Yes. That is why I am only enlisting the tax account for the tax advice. I have also contacted a couple of tax lawyers.

This is what was advised.

I have no other asset outside of Aus so my tax filing is simple. I just have to declare the interest earned 31st December 2018. I have not renounced yet so the realisation of the cash lump sum does not need to declared yet.

When I transfer the sum over, it will trigger some tax reporting event. Only there and then, I will be required to state my objections to any exaggerated amended assessment. This will also trigger the tax lawyer do his job. The tax lawyer advised that until there is a dispute in tax assessment, there is no need for him to step in.

Nothing to do before then. (Except to start the renunciation process)

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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Tue, 19 Feb 2019 2:18 pm

I don't agree with this: "When I transfer the sum over, it will trigger some tax reporting event."

The only time you are legally required to report tax events is when you file income tax after June 30 2019. Any other taxes (GST, stamp duty) do not require you to report.
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Re: Bank Account after renouncing SG-ship

Postby Mad Scientist » Tue, 19 Feb 2019 2:24 pm

Mate. I think you worried too much and too far.
Take one thing at a time
Disclaimer, I am not an accountant nor a lawyer. I do not know the inside out of ATO

I filed in my own tax return on both side of the ditch. No accountant no tax lawyer. You make mistake you own up and ATO or IRDNZ correct you.
Ignorance is a bliss
Having said that, my tax return to ATO is bugger all
I still have saving in Singapore and other countries
CSR declaration to my understanding is mainly focused on US regulatory. You declare it when you change your tax residence from SG to OZ. If you just bank it in at POSB or ask them to wire it straight , no need to do any CSR declaration. That is what I did
It is the same when you change your residence status for your insurance policy.
I guess you are already on your super if you are not then only then this income/saving will come into play but if you park it in other instrument there is no need for this worry. I'm doing it .
I'm not teaching you to circumvent the law but all of us that did this way has no qualms
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Tue, 19 Feb 2019 2:41 pm

Hello, would be a tax resident here. The sum transferred will go into financial planning strategies here. Hence the transfer. I don’t have any other assets anywhere else.

The “tax event trigger” the accountants and lawyers are referring may mean one of several things
(1) a letter to explain source of funds from ATO/AUSTRA C ;or
(2) in the other scenario, an amended tax return. I don’t know how that can happen. It was not explained to me.

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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Tue, 19 Feb 2019 6:27 pm

Whatever you do don't use BTC to transfer it.
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Tue, 19 Feb 2019 7:08 pm

Yes, I heard about that too. I hear funds get stuck in the “pipeline “

Reliable options available are
(1) direct to overseas bank if CPF does that
(2) from Sg bank to Aus bank


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