What action can the Australian Tax Office take to retrieve tax when I am in the UK?

[Tonyc88]

Hi all,

 

Bit of a story. Let me state the facts.

 

- I relocated to Australia in 2010 and left in May 2012.

- I received an internal transfer from my company, whom I worked for a total of about 8 years (6+ in UK, 18 months in Oz)

- Over the course of my employment I received a lot of stock options that mature over years.

- The vast majority of these were awarded to me when I was in the UK and matured when I was in the UK. A few matured while in Australia but not a lot at all.

- I left the company, left Australia and sold my stock options.

- I sold my stock option in August 2012 when I was back in the UK.

- I put the stock options on my UK tax return for 2012/2013. I have not tried to dodge tax but simply claimed the tax where I saw fit - I'm aware the issue is the ATO may not see it as black and white as this.

 

Recently the ATO sent me a letter (in the UK) asking for the tax. It seems my company notified them as they are a benefit and now the ATO wants the tax.

 

Does anyone have any idea what the ATO can do? How powerful is the ATO/HMRC relationship?

[unclebulgaria67]

From what I gather having discussed this previously with someone in a similar position, is that it can be pretty complicated. The ATO if you don't work with them, will continue to try to enforce the bill in the UK. I believe there are mutual agreements between the two countries, but UK courts are easier, as there are case precedents which allow foreign debts to be enforced if the debtors is resident in the UK.

 

You would be best to contact the ATO and to work with them. If you have already paid the tax to HMRC, then send a copy of any evidence of this to the ATO, with an explanation of the situation. I don't believe that you can be made to pay the same tax twice.