I today have advice from the ATO with regard to the foreign currency rules and the CGT implications regarding transferring monies from a UK bank account to an Australian bank account.

The ATO's view is that where the taxpayer is an individual and not in business then the forex rules are ignored.

This is also their view on CGT where the bank account is of a private and domestic nature, and also their view where the transfer is greater than $10,000 AUD.

Therefore, where you leave money in the UK waiting for a higher exchange rate, there are no tax implications on again. It also means any losses cannot be claimed.

More detailed specs will be posted on the website of the firm where I work shortly.

Regards
Mark Willis

As I have said before Mark, I have been advised the opposite by the ATO - the law relating to the forex provisions applies to individuals and to businesses, and the reference to a A$10,000 threshold is a new one.

If the ATO would be so good as to publish an Interpretative Decision or a Public Ruling to the effect you have mentioned I'd be delighted. Can you encourage them to do so? If I may say so, a posting to that effect on the ATO website would be more reliable than one on your firm's ...

Best regards.

PS. Here are extracts from three Private Rulings published on the ATO website:
http://www.ato.gov.au/rba/content.asp?doc=/rba/content/45095.htm
http://www.ato.gov.au/rba/content.asp?doc=/rba/content/45250.htm
http://www.ato.gov.au/rba/content.asp?doc=/rba/content/35503.htm

Well, keep at it - you may see the light eventually!

quote:

Originally posted by Alan Collett:

If I may say so, a posting to that effect on the ATO website would be more reliable than one on your firm's ...


AS OPPOSED TO THE INFORMATION ON YOUR OWN WEBSITE?

This is becoming unnecessarily personal. I would only say that:

1. I believe I have an obligation as the owner of this website to ensure that where possible (and within the limits on my time) information that is posted by others is accurate, particularly so when it is posted by other professionals. In saying this, please note that I am not in the business of disparaging others - that would not be professional. Hope that makes sense.

2. I'm happy to be corrected if you think otherwise and can point me to any webpages where you disagree, but so far as I know all commentary on this website and the Collett & Co website regarding taxation is based on information published in writing by the ATO or by the Treasury.

3. As I said above, if the ATO puts something in writing that confirms the above I'll be delighted. If you have a Private Ruling - super - but as you know a Private Ruling doesn't have general application to the general body of taxpayers. What we really need is a Public Ruling, duly published on the ATO website, and so far as I know that isn't (yet) the case.

Best regards.

quote:

Originally posted by mark68:
Well, keep at it - you may see the light eventually!

quote:

Originally posted by Alan Collett:

If I may say so, a posting to that effect on the ATO website would be more reliable than one on your firm's ...


AS OPPOSED TO THE INFORMATION ON YOUR OWN WEBSITE?