Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I want a tax accountant who is familier with money earnt on…

Customer Question
I want a tax...

I want a tax accountant who is familier with money earnt on cruise lines

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

I need one in Adelaide as I need help in understand in the law regarding income earnt on board a ship registered in Bermuda but staff paid in American dollars is it tax free if you don't live here but just have your children residing here and you come for holidays if it isn't tax free when did the law change

Accountant's Assistant: Is there anything else the Expert should be aware of?

Yes no tax returns were sent in to austrailia as all land tax was upto date and I am a nz citizen and have only had a house here since 2015

Submitted: 8 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 days by:
10/1/2017
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 8 months ago
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,114
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

Please give me a few minutes to type my answer.

Ask Your Own Tax Question
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 8 months ago

Australia has not changed their residency or tax rules. They are just getting more sophisticated in how they are enforced.

I've had several clients work on cruise lines, one as a captain. They typically spend 200 - 250 days on board, and the rest of the time they are off ship. I am assuming that your situation is similar, and that the time you are not working is when you are vacationing in Australia.

Australia taxes its residents on worldwide income, so if you are an Australian resident, you would be taxed on your income even if it was earned offshore on the ship. You would be taxed in Australia even if you worked in Dubai and returned to Australia for R&R if you are deemed to be an Australian resident.

Australia has four tests for residency. They go in order of significance, so once you pass one, you do not need to look any further.

The first test is the step is the residence test. This is the primary test of tax residency. It assesses a range of factors to determine whether you reside in Australia and are therefore a resident for tax purposes. The test takes into account factors such as the purpose of your presence in Australia, your family and business ties, whether you open bank accounts, and your social and living arrangements. In your situation, you own a house in Australia. Your children reside in Australia, possibly in the house you own (how old are they?). You return to Australia when you are not working. I am assuming that you have Australian bank accounts, if for nothing more than convenience. So based on the above facts, the ATO would more than likely say that you are a resident. They have a number of cases that have similar facts that they can look to when reaching this conclusion, and you would have great difficulty to prove other wise.

The second test is the domicile test. If your domicile, or permanent home, is in Australia, you will be classified as an Australian resident for tax purposes. You have to have a domicile somewhere. Yours would not be on your ship, as that is a transient location. So, looking at the facts that you have listed above, the ATO would stay that your domicile is in Australia, unless you can prove you have a domicile elsewhere. Your ship's flag, or your currency of compensation, have nothing to do with your domicile. So, do you have a domicile somewhere other than in Australia? A domicile is where you live, where you have your home, where your family is, where you vote, where you return to when not working, where you have your bank accounts, where your driver's license is from, etc. If you do not have one outside of Australia, then the ATO would stay that you are an Australian tax resident. You have NZ citizenship, so if you say that you have a NZ domicile, then NZ will tax you on your worldwide income, so your cruise ship wages would be taxed in NZ.

The remaining two tests you would fail. The first is the 183 day test. If you spend 183 days in Australia during a tax year (does not need to be consecutive, there can be breaks) then you are a tax resident. The final test is the superannuation test. IF you are covered by a super, you are considered a resident. This test applies mainly to government employees working outside of Australia.

So, in sum, the ATO would more than likely say that you are an Australian tax resident, and your cruise ship earnings would be subject to tax in Australia. The only way you could contest that is to prove that you have a tax home somewhere else.

I hope this answers your questions. If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Have a great week.

Roger

Ask Your Own Tax Question
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 8 months ago

I have not heard back from you. Do you have any further questions?

If you do not, please remember to rate me, as this is how questions are closed.

Thanks!

Roger

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask taxmanrog Your Own Question
taxmanrog
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,114
1,114 Satisfied Customers
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.

taxmanrog is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I need help for a copy of my income tax return for the year
i need help for a copy of my income tax return for the year 2015 if there is chance pls. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
In preparation for MN income tax return, we noticed a
In preparation for MN income tax return, we noticed a discrepancy and would like to receive a transcript for the 2016 income tax return for MN. We have a POA on both spouses, thanks, … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
Can my tax return be re-done? I filed tax return for 2017,
Can my tax return be re-done?I filed tax return for 2017, and want it to be joint-file with my husband. but somehow it was done as I am single.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
Maryland personal property tax return. Is medical billing
Maryland personal property tax return. Is medical billing software (not canned software) personal property?… read more
Alexander Efros
Alexander Efros
Masters of Business Administration (MBA)
42 satisfied customers
It's not really a tax question. We've got tax return and
Hi Pearl, it's not really a tax question. We've got tax return and deposited it to the bank. Check was 11K+. this transaction didn't come to my account to help bank to trace it, I'd need to have payme… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I sent in a connecticut residence tax return in March and
I sent in a connecticut residence tax return in March and haven't received anything yet … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I just filed a client's tax return for 2014. Tax return
I just filed a client's tax return for 2014. Tax return filing was due 4/15/2015...filed 4/17/2018. - just met the 3 year filing window. If I need to amend, is there a new window of time to do this?… read more
abci168
abci168
Principal
27 satisfied customers
When a married couple files a joint income tax return, is
When a married couple files a joint income tax return, is there a way to determine how much tax to pay for the separate property income minus expenses, and how much for the community property income m… read more
abci168
abci168
Principal
27 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
My mom is a dependent on my tax return with no work income.
Hello, my mom is a dependent on my tax return with no work income. She does receive few thousands of social security income. She received form 1095-A and says she is required to file a tax return. Whe… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Finally filing 2016 income tax returns. Filing as "married
Finally filing 2016 income tax returns. Filing as "married filing separate return". Did not live with spouse at all in 2016. What is she on my return: an exemption? a dependent? an alimony expense onl… read more
abci168
abci168
Principal
27 satisfied customers
Under what amount should you not file income tax return?
Under what amount should you not file income tax return? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,395 satisfied customers
I just want to know where to mail my income tax return.
I just want to know where to mail my income tax return. … read more
Carter McBride
Carter McBride
LLM
1,153 satisfied customers
My MO income tax return was returned to me that I was not
My MO income tax return was returned to me that I was not getting any return I fax them my 1099 and a copy of the rent I paid in 2017 I am 68 years old could you check and see if that was received ant… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I prepared a c-corp trucking company income tax return for
I prepared a c-corp trucking company income tax return for 2015 and 2016 They paid their employee drivers per diem for days away All the records are good but the IRS says I should have only deducted 8… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My mother in law passed away in 2016 and a final tax return
My mother in law passed away in 2016 and a final tax return was filed for that year. She received a 1099-int form issued with her ss# in 2017 for prepaid funeral expenses that the funeral director did… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
OH State income tax - Schedule A - personal tax return line
OH State income tax - Schedule A - personal tax return line 31. 1. What is the difference between "survivorship benefits" and "pension continuation benefits"? * New client for me. * OH resident * Spou… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
FOR GUILLERMO: What line on the 1040 income tax return is
FOR GUILLERMO: What line on the 1040 income tax return is used to determine the sponsor's income for Form I-864? Is it line 22: TOTAL INCOME? Or, line 37, ADJUSTED GROSS INCOME?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x