A tax question for all Aussies - GoFuckYourself.com

Scoobs · 07-17-2001, 07:12 AM

Hi guys...

Yes, I am new here, but I have been an adult webmaster for a couple of years now...

Anyway, I went and saw my accountant today to clear up a matter to do with this awful GST shit that Howard has forced upon us. Basically, we as Oz webmasters should POSSIBLY be collecting GST from all Australian surfers that you sell a membership to (to any website). This is not clear-cut unless you are running your own pay site, in which case it would seem certain that you need to collect GST from any Australian members.

As most of my income comes from AVS's, it looks like I have to somehow work out how many members are from Australia so that I can give up some of my income to the Govt.

So, my question is, has anyone else here run into that problem? Any suggestions on how to deal with it?

Thanks!

Nurgle · 07-17-2001, 07:22 AM

Yo dont have to collect GST

You are earning money from an overseas company. Any GST that is collectable is from them.

Go see a proper accountant

Nurgle

Gemini · 07-17-2001, 07:30 AM

You should check to see if the more or less World Wide moratorium on sales tax for the net can apply to you. The US government has that set up... currently talking about extending that time period. I think its for the very reason you are talking about. It would break the bank for webmasters to gain the technology to figure out where everyone is!

I'd think an attorney would be the one to ask about his sort of thing, not the accountant. We have both and our accountant asks us to ask the attorney in some cases and then she goes from what the attorney says. The web is still new enough that accountants can't work with clear cut tax laws and they usually will err in the favor of taxes, if they aren't positive.

Scoobs · 07-17-2001, 03:54 PM

Nurgle...

I dont understand what you are saying. If you run a paysite and an Australian buys a membership, then you are an Australian entity that has sold a product/service to an Australian, and therefore you need to collect GST on that sale. It doesnt matter what country the money is going to when the surfer signs up, nor does it matter what country the money comes from when you get paid, you are still selling a service to an Australian that you need to collect and pay the govt GST on...

Does this make sense or am I totally off track?

Gemini · 07-17-2001, 04:02 PM

Sounds like you need to see a good tax attorney Scoobs.. It would be better if you had a legal answer on this question just to protect your own butt. Alot of the free world counries are NOT making webmasters pay ANY taxes on sales or services. Just on their income tax. Let us know what he or she tells you.

Sloane · 07-17-2001, 06:56 PM

Scoobs, our accountant said GST doesn't apply to us. If most of your income is from AVS you have nothing to worry about. Even if an "Australian" purchases an AVS pass, they are purchasing this from most likely a US company, where GST does not apply. Same if your upselling to a US sponsor within the AVS. Hope this makes sense.

Bake · 07-17-2001, 10:57 PM

It only applys if the content of the site is old or cooked if its fresh content then no GST applys.
you need a better accountant I only sell to OS surfers

Bake

------------------

Talk to Bake 77762980 If you need it Bake has it.Ask me First
You must have a firm grip on Irony before life becomes fun

Aussie · 07-18-2001, 02:42 AM

What you mean you have to pay TAX ????

Also I own an AVS site,(Well use to).

I normally take my tax questions to TIPS.
They were wonderful last year.

richard123 · 07-18-2001, 03:00 AM

I don't pay any tax - GST or otherwise - on my Net income since I keep it all offshore. I have already explained that in a post - search for citibank and you'll find it.

GST: My accountant says I sell a service to US companies. Exports are GST free. No problem!

Paul P · 07-18-2001, 04:11 AM

question to you richard, is how do you deposit cheques to your singapore account, and is everything confidential? I payed a shit load of tax last year and am just recovering from it, and this sounds like it could be the way to go. Do they have branches in australia or something?
couldnt find any in adelaide white pages.

Sloane · 07-18-2001, 04:22 AM

Richard, do you stash all your porn dollars offshore, or only a portion of it?
Ive been thinking about opening a CitiBank Singapore account too, but the thing that confuses me is how the hell do you bring the money back in the country? I know you can withdraw $2kAUD per day with the Citibank card, but what if you wanted to buy a property or a nice car...wouldnt that ring alarm bells with the ATO?

Cheers
Sloane

Sloane · 07-18-2001, 04:33 AM

Paul, my partner got a call from a Citibank representitive in Singapore, he said you can either wire the cash directly from the sponsor to the account, or you can mail the checks to the Singapore branch and they will deposit it for you. Not sure how private the account is. I guess being an offshore account it would be difficult for the ATO to query it, but we will have to wait for Richard to answer that one..

Nurgle · 07-18-2001, 04:36 AM

Another way to lower your tax bill is to set up a company, which is taxed at 30 odd %, and pay all your bills from this account.. do all yuor investing from this account etc

My accountant has set all this up.. running the car thru it etc works quite well... but u need to be earning 50k+ / yr to make it worthwhile

Nurgle

07-17-2001, 07:12 AM	#1
Scoobs Confirmed User Join Date: Jul 2001 Location: Out back Posts: 492	A tax question for all Aussies Hi guys... Yes, I am new here, but I have been an adult webmaster for a couple of years now... Anyway, I went and saw my accountant today to clear up a matter to do with this awful GST shit that Howard has forced upon us. Basically, we as Oz webmasters should POSSIBLY be collecting GST from all Australian surfers that you sell a membership to (to any website). This is not clear-cut unless you are running your own pay site, in which case it would seem certain that you need to collect GST from any Australian members. As most of my income comes from AVS's, it looks like I have to somehow work out how many members are from Australia so that I can give up some of my income to the Govt. So, my question is, has anyone else here run into that problem? Any suggestions on how to deal with it? Thanks!

07-17-2001, 07:22 AM	#2
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Yo dont have to collect GST You are earning money from an overseas company. Any GST that is collectable is from them. Go see a proper accountant Nurgle

07-17-2001, 07:30 AM	#3
Gemini Confirmed User Join Date: Jan 2001 Location: o-HI-o Posts: 7,183	You should check to see if the more or less World Wide moratorium on sales tax for the net can apply to you. The US government has that set up... currently talking about extending that time period. I think its for the very reason you are talking about. It would break the bank for webmasters to gain the technology to figure out where everyone is! I'd think an attorney would be the one to ask about his sort of thing, not the accountant. We have both and our accountant asks us to ask the attorney in some cases and then she goes from what the attorney says. The web is still new enough that accountants can't work with clear cut tax laws and they usually will err in the favor of taxes, if they aren't positive.

07-17-2001, 03:54 PM	#4
Scoobs Confirmed User Join Date: Jul 2001 Location: Out back Posts: 492	Nurgle... I dont understand what you are saying. If you run a paysite and an Australian buys a membership, then you are an Australian entity that has sold a product/service to an Australian, and therefore you need to collect GST on that sale. It doesnt matter what country the money is going to when the surfer signs up, nor does it matter what country the money comes from when you get paid, you are still selling a service to an Australian that you need to collect and pay the govt GST on... Does this make sense or am I totally off track?

07-17-2001, 04:02 PM	#5
Gemini Confirmed User Join Date: Jan 2001 Location: o-HI-o Posts: 7,183	Sounds like you need to see a good tax attorney Scoobs.. It would be better if you had a legal answer on this question just to protect your own butt. Alot of the free world counries are NOT making webmasters pay ANY taxes on sales or services. Just on their income tax. Let us know what he or she tells you.

07-17-2001, 06:56 PM	#6
Sloane Confirmed User Industry Role: Join Date: Feb 2001 Location: Vietnam Posts: 815	Scoobs, our accountant said GST doesn't apply to us. If most of your income is from AVS you have nothing to worry about. Even if an "Australian" purchases an AVS pass, they are purchasing this from most likely a US company, where GST does not apply. Same if your upselling to a US sponsor within the AVS. Hope this makes sense.

07-17-2001, 10:57 PM	#7
Bake Confirmed User Industry Role: Join Date: Jan 2001 Location: Outback of bumfuck Aussie Posts: 5,270	It only applys if the content of the site is old or cooked if its fresh content then no GST applys. you need a better accountant I only sell to OS surfers Bake ------------------ Talk to Bake 77762980 If you need it Bake has it.Ask me First You must have a firm grip on Irony before life becomes fun

07-18-2001, 02:42 AM	#8
Aussie Confirmed User Join Date: Jan 2001 Location: Earth Posts: 262	What you mean you have to pay TAX ???? Also I own an AVS site,(Well use to). I normally take my tax questions to TIPS. They were wonderful last year.

07-18-2001, 03:00 AM	#9
richard123 Confirmed User Join Date: Mar 2001 Posts: 491	I don't pay any tax - GST or otherwise - on my Net income since I keep it all offshore. I have already explained that in a post - search for citibank and you'll find it. GST: My accountant says I sell a service to US companies. Exports are GST free. No problem!

07-18-2001, 04:11 AM	#10
Paul P Confirmed User Join Date: Jul 2001 Location: Adelaide, South Australia Posts: 202	question to you richard, is how do you deposit cheques to your singapore account, and is everything confidential? I payed a shit load of tax last year and am just recovering from it, and this sounds like it could be the way to go. Do they have branches in australia or something? couldnt find any in adelaide white pages.

07-18-2001, 04:22 AM	#11
Sloane Confirmed User Industry Role: Join Date: Feb 2001 Location: Vietnam Posts: 815	Richard, do you stash all your porn dollars offshore, or only a portion of it? Ive been thinking about opening a CitiBank Singapore account too, but the thing that confuses me is how the hell do you bring the money back in the country? I know you can withdraw $2kAUD per day with the Citibank card, but what if you wanted to buy a property or a nice car...wouldnt that ring alarm bells with the ATO? Cheers Sloane

07-18-2001, 04:33 AM	#12
Sloane Confirmed User Industry Role: Join Date: Feb 2001 Location: Vietnam Posts: 815	Paul, my partner got a call from a Citibank representitive in Singapore, he said you can either wire the cash directly from the sponsor to the account, or you can mail the checks to the Singapore branch and they will deposit it for you. Not sure how private the account is. I guess being an offshore account it would be difficult for the ATO to query it, but we will have to wait for Richard to answer that one..

07-18-2001, 04:36 AM	#13
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Another way to lower your tax bill is to set up a company, which is taxed at 30 odd %, and pay all your bills from this account.. do all yuor investing from this account etc My accountant has set all this up.. running the car thru it etc works quite well... but u need to be earning 50k+ / yr to make it worthwhile Nurgle