Big Aussie issues
Question from Peter updated on 12th February 2013:
My wife and I have owned a rental property for three years. We are moving over to Australia to work and want to know how this will impact the Look Through Company (LTC) tax structure. My wife goes three months before I do and I'm wondering if it is worth tranferring some of my wife's shares to me? She owns 70% share and I own 30%
Our expert Mark Withers responded:
I think you have much bigger issues to consider than just the shareholding in your New Zealand LTC. Your first port of call is to get in touch with a good Australian acountant to ask whether you'll qualify for the Australian temporary migrants exemption, when will you become Australian tax resident (if at all) and when will you be liable for capital gains tax in Australia. From a New Zealand perspective, talk to your accountant about whether you're leaving here for good and would you qualify to become non New Zealand tax resident. I'm not sure what benefits or objectives you are trying to achieve by transferring shares from your wife to you.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.