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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43466
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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An Australian resident for tax purposes will receive a gift

Customer Question

An Australian resident for tax purposes will receive a gift of shares in a South African private company from her parents. The value of the shares given will have been subjected to gift tax in south Africa at the rate of 20%. Would this gift also be subject to tax in Australia and if so would the tax paid in S,.A. be creditable against the amount payable in Australia ?
JA: Because laws vary from state to state, can you tell me where the company is registered?
Customer: In South Africa
JA: Has anything been filed or reported?
Customer: no transaction has yet taken place
JA: Anything else you want the lawyer to know before I connect you?
Customer: no thanks
Submitted: 3 months ago.
Category: Australia Law
Customer: replied 3 months ago.
the parents gifting the shares are not Australian tax residents
Expert:  Leon replied 3 months ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Expert:  Leon replied 3 months ago.

Good Afternoon

They may be taxed in South Africa as the company is registered in South Aftrica. But there is no tax in australia.

The gift here is tax free. Only the income that you receive from the shares in SA will be taxed when you receive it. In Australia all income derived world wide is subject to tax.

But the shares are tax free they are a gift and tax free. The tax she pays for the shares being transferred would not be deductible here.

I hope this makes sense and is of assistance. If there is nothing further have a great christmas and new year. Thank you for using my services.

If I have missed anything, or you have any further questions please let me know

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Regards

Leon