2012 Taxback Upon Return - I owe them money??

Slunk

I came back from Australia in October 2011 and lodged my tax return around march 2012 for the few months i worked of this tax year. I paid 991 tax altogether but Ive just recieved a letter saying I owe them $1,235. Apparently they are classing me as a non resident for tax purposes. Surely this isnt correct. Can anyone shed some light on this.

hussey

Slunk wrote: »

I came back from Australia in October 2011 and lodged my tax return around march 2012 for the few months i worked of this tax year. I paid 991 tax altogether but Ive just recieved a letter saying I owe them $1,235. Apparently they are classing me as a non resident for tax purposes. Surely this isnt correct. Can anyone shed some light on this.

Best go to a tax consultant should be about $100 or so.
Question : How long did you work and live in one area? You said a 'few months' if so then you would not be a resident for tax purposes.
To be a RfTP you must have lived or worked in the one area for most of 6months. Or at least intend too.

Mellor

hussey wrote: »

To be a RfTP you must have lived or worked in the one area for most of 6months. Or at least intend too.

How does that that work if you aren't here for a full year.

The OP only worked 4 or so months of this year. So can he be classed as RfTP including his time in previous tax years or is each year independent.

hussey

Mellor wrote: »

How does that that work if you aren't here for a full year.

The OP only worked 4 or so months of this year. So can he be classed as RfTP including his time in previous tax years or is each year independent.

If you intend on living/working for 6 months you can be a RfTP after 1 day

This is the calculator
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Resident.XR4&go=ok

ANXIOUS

I would ignore them, unless you plan on going back.

Mellor

I am aware of that.
Intention only applies if you are still in Australia (except rare cases I imagine). Somebody arrives are the end of tax year and only works for May and June, but they intend on being here for a year, so they are RfTP based on that intention.

My question was does the fiscal year affect the 6 months.
ie Is it 6 months or more in the one location in the current tax year. I'm pretty sure its not the case, but the system might treat it like that flagged the OP as he was only here for 4 or 5 months of this tax year. Which should be easy to clarify.

On the other hand, maybe he only got here in July, in that case he owes them that money.

hussey

Mellor wrote: »

My question was does the fiscal year affect the 6 months.
ie Is it 6 months or more in the one location in the current tax year. I'm pretty sure its not the case, but the system might treat it like that flagged the OP as he was only here for 4 or 5 months of this tax year. Which should be easy to clarify.

Sorry misread your meaning, I am pretty sure it's 6 months regardless of the fiscal year.

e.g. When I started to work a few years ago, it was Feb, I rang the ATO and said I'll be working for 4 months of the current tax year, 1 month break and a further 5 months of the next tax year and would be going home (well that was intention back then) and they said I would be classed as a RfTP. So I don't fiscal year rather than just 6 months.

Might be worthwhile giving them a ring.

Slunk

My apologies if i wasnt clear. I was in Oz for one year and when i claimed my tax for the first half, year ending june 2011 i was a rftp. Now when I go to claim for july-oct 2011 they say I am not a rftp? They say I can write and object.

I might pop into taxback.com in dublin and get some advice and maybe let them sort it out and save me the hassle. I know theyll charge a fee but ill avoid hassle.

Also if it turns out I do actually owe them, can they come after me for this? Or take it from my AU account as i supplied the details thinking i was getting a refund.

Mellor

hussey wrote: »

Sorry misread your meaning, I am pretty sure it's 6 months regardless of the fiscal year.

Yeah, I'm certain of that too. But the system is probably automated. Easier to flag lots and sort it afterwards than let some slip by.

Slunk wrote: »

My apologies if i wasnt clear. I was in Oz for one year and when i claimed my tax for the first half, year ending june 2011 i was a rftp. Now when I go to claim for july-oct 2011 they say I am not a rftp? They say I can write and object.

You are fine. Explain that to them. With dates, refer to your previous tax return.

I might pop into taxback.com in dublin and get some advice and maybe let them sort it out and save me the hassle. I know theyll charge a fee but ill avoid hassle.

I wouldn't do this. They'll fleece you.

Also if it turns out I do actually owe them, can they come after me for this? Or take it from my AU account as i supplied the details thinking i was getting a refund.

Most likely not. But it will be a debt to the state, you'll need to repay it if you ever return. Shouldn't be an issue as you are in the clear.

hussey

Mellor wrote: »

Yeah, I'm certain of that too. But the system is probably automated. Easier to flag lots and sort it afterwards than let some slip by.

You are fine. Explain that to them. With dates, refer to your previous tax return.


I wouldn't do this. They'll fleece you.


Most likely not. But it will be a debt to the state, you'll need to repay it if you ever return. Shouldn't be an issue as you are in the clear.

+1 pretty much agree to all of this, might be best to ring the ATO first before taxback, if you are going to tax back make sure you are talking to a registered tax agent rather than some dude filling out a form.

I rang ATO before and they were pretty helpful.

sjoyce87

Save me starting a new thread, I have been working since the end of Feb. And ticked no on resident for tax purposes, I have paid close to 4 grand tax so far, I am just wondering do I have anything to worry about , I have about who got charged aswell , I just really need my tax back for going travelliing . Thanks.

Pisco Sour

sjoyce87 wrote: »

Save me starting a new thread, I have been working since the end of Feb. And ticked no on resident for tax purposes, I have paid close to 4 grand tax so far, I am just wondering do I have anything to worry about , I have about who got charged aswell , I just really need my tax back for going travelliing . Thanks.

If you get asked say that you plan to work in the same place for another few months. Don't hang yourself and say you are pissing off travelling after 4 months of work. You'll be fine.

Jimoslimos

What I think might have happened here is that the OP (or the OP's employer) ticked 'Resident for tax-purposes' when they commenced employment - hence the lower rate of tax.

Then when the OP was filling out their tax return they ticked 'non-resident for tax purposes'. This would explain the discrepancy I guess. Not sure on the best course of action to rectify it.

Non-resident: Taxed at higher rate, but get the bulk of this back when they leave or become resident
Resident: Taxed at lower rate, but receive less tax-back

Some WHVers prefer to tick non-resident (regardless of whether they intend to stay 6 months in one place) since it means a bigger lump sum at the end, a savings fund if you like.

Jimoslimos

Slunk wrote: »

My apologies if i wasnt clear. I was in Oz for one year and when i claimed my tax for the first half, year ending june 2011 i was a rftp. Now when I go to claim for july-oct 2011 they say I am not a rftp? They say I can write and object.

Just saw this, am wondering was it an early tax return or did you do it at the end of the tax year? Would this affect your status in ATO eyes?

sjoyce87

04072511 wrote: »

sjoyce87 wrote: »

Save me starting a new thread, I have been working since the end of Feb. And ticked no on resident for tax purposes, I have paid close to 4 grand tax so far, I am just wondering do I have anything to worry about , I have about who got charged aswell , I just really need my tax back for going travelliing . Thanks.

If you get asked say that you plan to work in the same place for another few months. Don't hang yourself and say you are pissing off travelling after 4 months of work. You'll be fine.

Thanks, well I plan on doing my full 6 months with this company so should be grand.. also another question for my friend , does being on a sponsorship visa effect your tax back?

Mellor

Jimoslimos wrote: »

Just saw this, am wondering was it an early tax return or did you do it at the end of the tax year? Would this affect your status in ATO eyes?

Well that tax year doesn't end for another 6 weeks so it had to be an early return.

Mellor

Sponsorship visa is resident for tax purposes just like WHV for more than 6 months.

I think the situation needs to be clarified. You don't get all your tax back. Just any extra money paid that wasn't due. If you've been paying tax at 30% or so as a non-resident then you'll get a lot back when you do a return as a resident. But they still keep all the tax you are due to pay.

Jimoslimos

Mellor wrote: »

Well that tax year doesn't end for another 6 weeks so it had to be an early return.

Ah yes, so it does. Forget that.

I was fortunate enough to leave Aus in late July (and finished work in June), which gave me time to sort out my returns without worrying about the following year.

Slunk

Jimoslimos wrote: »

Slunk wrote: »

My apologies if i wasnt clear. I was in Oz for one year and when i claimed my tax for the first half, year ending june 2011 i was a rftp. Now when I go to claim for july-oct 2011 they say I am not a rftp? They say I can write and object.

Just saw this, am wondering was it an early tax return or did you do it at the end of the tax year? Would this affect your status in ATO eyes?

Its an early return. Tax year doesn't end until the end of June. I don't see how this could affect it. Hopefully I can get it sorted.

Slunk

Ok, finally got round to getting the form for an objection. Im useless with forms. Dont suppose anyone has any previous experience with this and knows how to word it.
Basically I am objecting on the basis that my previous return I was classified as RTFP and as such received my refund, for which I have supporting documentation. I was in Oz for one year and the last four months were for the 2012 tax year.