Aspen Corporate Pty Ltd
Aspen Corporate • 10 November 2021

The ATO has recently issued an alert on gifts or loans from overseas. The ATO is particularly concerned about schemes and arrangements designed specifically to circumvent Australian tax laws. 

In general, Australian-resident taxpayers need to declare their worldwide income in their Australian tax return. Some schemes however disguise offshore capital gains or income as a gift or loan.


So, how do the ATO know if money from overseas is a genuine gift or loan? Generally, the ATO will expect to see some form of evidence that the gift is genuine such as a deed of gift prepared by the donor, formal identification of the donor, a copy of the donor’s bank account, or in the case of an inheritance, the will or distribution statement from the estate.


If you have received a loan from overseas, the ATO will expect to see properly executed loan documentation, and other documentation supporting why the loan was made and its purpose. Third party documentation is best as documentation from a family member may not be accepted as conclusive evidence of a loan.


The ATO will form its view based on the evidence available.


Loans received from companies or trusts can still trigger tax issues in Australia.

by Aspen Corp 26 March 2025
Aspen Corp's 2025-26 Federal Budget Update
Australian girl holding a flag
by Aspen Corp 19 March 2025
Global Google searches for the word “tariffs” spiked dramatically between 30 January and 2 February 2025, a +900% increase to the previous 12 months. We look at what tariffs really mean.
by Domenic Tartaglia 19 March 2025
The Australian Taxation Office (ATO) continues it's focus on proper record-keeping practices for Next 5,000 privately owned and wealthy groups, emphasizing the need for transparency and accuracy in tax reporting.
by Aspen Corp 11 March 2025
The Fringe Benefits Tax (FBT) year ends on 31 March. We’ve outlined the hot spots for employers and employees.
Australian suburban property
by Aspen Corp 11 March 2025
The Government has announced a ban on foreign property purchases until 31 March 2027 to curb foreign “land banking.”
Credit Cards
by Aspen Corp 13 February 2025
If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point.
More posts
Share by: