BrisDubBris Posted January 9, 2012 Share Posted January 9, 2012 Hi all, Can anyone tell me if someone in Ireland transfers a large amount of cash to my account in Aus, do I have to pay tax on the principle or only on the interest? Thanks Link to comment Share on other sites More sharing options...
Guest GeorgeD Posted January 9, 2012 Share Posted January 9, 2012 You don't pay any tax on any money gift transferred to you in Australia. If you are an Australian tax payer you are only taxed on money you earn worldwide. Gifts are not earnings. There is no limit either, so if someone wanted to give you a million dollars then there is no tax to transfer it into Australia. Once the money is yours, you pay tax on any interest it earns in the bank, same as any money you have. This applies whether you keep it in Australia or anywhere else in the world as you are taxed on worldwide income. To summarise, earning money incurs tax, transferring it around the world has no tax implications in Australia EDIT: Don't know if Ireland taxes you for sending money abroad or for sending/receiving gifts...no Aus tax though! Link to comment Share on other sites More sharing options...
BrisDubBris Posted January 10, 2012 Author Share Posted January 10, 2012 Thanks George! Link to comment Share on other sites More sharing options...
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