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Inheritance from OS

Discussion in 'Accounting, Tax & Legal' started by conror01, 18th Jun, 2010.

  1. conror01

    conror01 New Member

    Joined:
    18th Jun, 2010
    Posts:
    1
    Location:
    melbourne
    Hi
    I am expecting an inheritance form OS if it is paid into an overseas bank account and i then transfer to australia do I need to pay any tax? Thanks for your hlep
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Assuming you are an Australian resident for tax purposes ...

    Generally no Australian income tax on inheriting the original amount bequeathed in the will if you did not pay anything for for the right.

    i.e. it is truly a bequest under a will and not merely the executor paying amounts that are owed to you by the deceased.

    However, if the estate has distributed any trust income such as interest earned during administration, or the overseas bank account has credited you interest then this is income here.

    Whether there are any gift duties or inheritance taxes in the country of the deceased is up to you to find out !

    Cheers,

    Rob
     
  3. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Rob has pretty much answered your question, but one little point to add:

    If the amount you transfer from overseas is greater than a certain amount ($10k I believe) it will get picked up by AUSTRAC. This means you may get a letter from the ATO in the future asking you if you having any overseas income or capital gains to declare / report.

    If it is simply a transfer of capital, then you have nothing to worry about. If you need further advice go a see an accountant.

    SM