In Canada, a Registered Retirement Savings Plan (“RRSP”) is a plan established to assist Canadians with saving for retirement. Contributions to the plan are generally tax-deductible in the same year and any income earned within the plan is tax-exempt. The Canadian taxation occurs when withdrawals are made from the plan. Read more…
The U.S. tax system is complex and far-reaching. Immigrants to the U.S. are often shocked to discover the hefty annual reporting requirements and punitive tax treatments applied to certain assets originating from their home country (such as employer pension accounts, mutual funds, life insurance, and personal retirement savings plans). In Read more…
The U.S. has several different types of plans to help taxpayers with retirement. The most common plans are 401(k) plans and individual retirement accounts (IRAs). 401(k) plans are U.S. employer-sponsored plans that allow employees to contribute a portion of their wages. Employers often make pre-determined contributions or “matching contributions” to Read more…
An Australian tax resident (who is not a U.S. citizen or green card holder) generally must file a U.S. tax return under one of four scenarios: The first scenario occurs when he or she has U.S. effectively connected income (ECI). Examples of U.S. ECI include wages earned while on business Read more…
US IRAs receive favourable tax treatment under the US tax system. But for Americans who immigrate to Australia, the taxation of US IRA’s under Australian tax law can be thwart with complexity. This article is the second article in a series on foreign retirement investments and foreign superannuation – last Read more…
Canadian RRSPs receive favourable tax treatment in Canada. However, for Canadians who immigrate to Australia, the Australian taxation of Canadian RRSPs can be a complex and confusing area. Furthermore, the Canadian Revenue Agency frequently informs the ATO of withdrawals from Canadian RRSPs which has resulted in the ATO treating 100% Read more…
The application of Australian Capital Gains Tax (CGT) and UK Inheritance Tax (IHT) can lead to an aggregate tax rate of 87% following the death of a loved one. Such a high tax rate should cause with clients who have lived in both jurisdictions to obtain specialist advice before they die to implement effective tax planning. (more…)
Australia’s foreign investment laws have recently changed. The overarching purpose of the foreign investment laws remains the same – the laws are designed to encourage foreign investment that is not contrary to Australia’s national interest. But some of the detail and administrative arrangements have changed. The new law: adds nuance Read more…
Fortunately in Australia we do not have inheritance tax. But you may be surprised to learn that if you die in Australia holding UK situated assets, your estate still could be caught by UK inheritance tax. This article is the first in a series about UK inheritance tax. The UK Read more…
In today’s world people are travelling, working and living more and more outside their country of birth. Sometimes when the needs of your business or personal life change, you can find yourself spending a lot of time overseas. Many people are unaware of the tax implications of doing so. This article looks at some of the things that you might need to think about if you are travelling abroad frequently.