Beware when trading a broker in Australia

Hi there there is a new threat dealing inside of australia with brokers using ASIC as they are heavily linked to the ATO here and they are going to allow a them to spy on the the every day traders that trade inside Australia and if you are linked to a broker that is from another country and has the ASIC link to it like FXpro you will be up for a double tax bill as there is a double tax treaty between austalia and alot of countries here right now....
I notice that AVAFX went from being in Cyprus to on shore here in Australia and they have change alot of things to there system like they way you transfer money you don't have access to the Master debit card that you could get from Payoneer linked to your account now ANZ have shut this down along with the ATO cause they couldn't track your money and what you spent it on. If your going to do trading properly then set urself up properly. you will notice that most brokers in Australia have limitations to how many lots you can trade here in Australia i trade offshore with out limitations of lot size or how much i can deposit to my account or withdraw this the is being for how australian government is tying to change the face of FX trading on shore here. the brokers here are audited every month and they are reports that go to the ATO so the ATO knows how much your spending and making our government is trying take over the the plans of trading in Australia.

Setup a offshore formation and banks properly and then trade through good offshore brokers too. reduce the risk to yourself and your family and the burden of paying double take that could cost you up to 0.75 in the dollar.

You could always just set it up as a business and pay at the gross income rate.

It doesn't suprise me at all about this. The system needs closer regulation but unfortunately it always come down to the poor man paying.

It isn't common practice for ATO to get down to knowing individual transaction details for each company, unless an audit is taking place, not that I know of anyway.

How did you come by this info brucesprott?

I notice whenever I make overseas transfer I have to provide my bank with a reason why and what for.

Thank you for bringing this info to our attention. I knew that all banks and some other financial institutions, including share transactions, in OZ have to report the interest paid to their customers electronically each year to the ATO who then match that up to your tax return to make sure you are reporting it as income. However, I was not aware that it now extends to Forex brokers.

I do not see how we would be paying double tax here though, as the broker is not charging us any tax fees directly, just their brokerage commissions.

So, as you advise Bruce, the solution would be to only have accounts with brokers outside of Australia and the ATO does not have the power to get records from all the brokers in the world. (Like how would the ATO know which overseas brokers we trade with anyway!). You might like to change your username on this forum, Bruce, as it is a dead giveaway for any snoopy ATO compliance officer to mark you down for an audit ....

I was audited by the ATO with a lot of questions about my trading practice and then all of a sudden success of my business so yes i did put it in to a business name but that made it worse for me as i was to pay 0.48 cents to the dollar but now they can't audit me because of the foundation and jurisdiction that i am in where Australia can't not ask for my tax information or banking information if they try they will have there asses handed back to them on a silver platter.

With trading here in this country it don't quite work the way people think that it works so seriously think again and no it is not common practice of the ATO to know this business stuff as i was paying taxes and now the tax system once again changed allowing them to come after alot of traders so just be aware.

don't get caught with your pants down or you pay the price.

Australian governments and joint business are hand in hand on everything that is why i had my business leave the shores of the australia for my protection and my families beware who you trust here

but there are jurisdictions that are allowed for the ATO and there are those that ain't allowed you just need to learn what is what and as for my username they can find out who we are no matter where we hide so i ain't hiding anymore i am in a juisdiction that can't be touched i paid my taxes here for only to let the government abuse that power given to them so enough rope from me now i have a future to think about here.... amongst other things to go with it so my time is now i am not doing anything wrong i have setup everything with in the laws of this country (which is ruled by cons and thiefs) and the country i am in so i am well with in the laws of both.

if your trading in a country that has a taxing treaty with Australia then you will pay double taxes no matter how your set up so be careful how you setup your business and trading or you will be paying more than double taxes i know i have been there it is not in the broker that is charging the taxes it is in the countries that you trade with i am just making people aware of the situations that people don't realise that really exist in this market of play

Thanks for bringing this up, so how would a small/big trader set themselves up to avoid the possibility of paying ridiculously high taxes?

you could incorporate a company in some of the tax havens and if necessary (depending on the laws of your county of residence) also use nominee shareholders and/or nominee directors.