SA Tax Rate for Investment in Australia?

Discussion in 'Commercial Law Forum' started by Ela, 14 April 2019.

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  1. Ela

    Ela Active Member

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    I invested in a company located in Australia. The company offers contracts with an amount of profits (depending on contract). They first asked 20% tax, and now they're asking for 32.5 cents per 1 dollar.

    An example of the tax invoice:
    Capital: $4508
    Profit: $18522

    Tax they are asking for: $6019

    I wanted to know why it is 32.5, however, based on what I understood, the rate should be 19 cents per 1 dollar over $18200!

    Just wanted to add that I'm non- Australian, and I'm not living in Australia.

    Thank you
     
  2. Tim W

    Tim W Lawyer
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    Invested in the company, as in you bought shares, or
    are you in some way their client/ customer, trading in some absurdly complex financial product?
     
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  3. Ela

    Ela Active Member

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    I'm their client and invested my money.
    They trade (Meta Trader 4 platform) and supposed to return the capital + profit. Then I was told about tax payment.
     
  4. Tim W

    Tim W Lawyer
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    No matter what words they use, this looks more like commission than tax.
     
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  5. Ela

    Ela Active Member

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    They call it tax invoice , ut they first said 20%, bow asking 32.5 cent per 1 dollar which made me worried.
    From your response, can I say, in such investments there shouldn't be any tax?
    How the commission is calculated? Is there any law in Australia about it?
    Thanks
     
  6. Tim W

    Tim W Lawyer
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    A Tax Invoice is a fancy name for a bill.
    It's called that because the total amount payable
    includes a component of Goods and Services Tax ("GST").
    If it's any more than 10%, then something is amiss.

    It's a bit hard to give you any useful advice without seeing the document itself
     
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  7. Ela

    Ela Active Member

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    Is it ok if I share it here?
    Here's the contract and two invoices, :
    -one is the very first tax invoice (20%), and
    -one is new (that shows I paid 20% and they deducted it from new payment amount)

    Please let me know your opinion about tax rate/bill.
     
    #7 Ela, 16 April 2019
    Last edited: 16 April 2019
  8. Tim W

    Tim W Lawyer
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    Like I said above, that's pretty much impossible without seeing the actual document.
    (No, don't post it here).
    If you want formal help with this, then you can instruct an Australian lawyer
    even though you live outside Australia.
     
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  9. Rob Legat - SBPL

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    You’ve got bigger problems. This company is listed as a potential scam on ASIC’s MoneySmart website, and they don’t hold an Australian Financial Services Licence.
     
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  10. Ela

    Ela Active Member

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    I already added a link in my text. You may take a look at the documents (here)
    Yeah, at the end, I may seek for help from a lawyer.
    Yes, I saw that and a lot of other comments. Though they are registered in ASIC (here) I don't know why they're registered when it's a scam :(
    My main concern is the tax rate. They kept talking about 32.5 cent ….

    Based on what I found (here) , foreign residents have to pay 32.5 cent per 1 dollar. But couldn't find an information about my situation.
    Since it needs more documents to calculate an accurate rate, please answer this question
    - Do non-Australian ( living outside Australia) have to pay for tax in case they are involved in an Investment?
    (by investment I mean, as a client I pay the company some amount of money, they do all the work and return capital + profit)


    Thank you
     
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