Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
User5656(Newbie)Newbie
26 Apr 2024

My mother-in-law operates a business in my home country (a company registered in my home country with no registration in Australia). She has a business agreement with one of the companies in Australia. She had never visited Australia, so she doesn't have any Australian bank accounts. So, she wanted it to be deposited in my account to support me and my husband during our stay in Australia. As the company is not registered and operated in Australia, my concern was whether we would be liable to pay the taxes for the overseas income of my mother-in-law deposited in my Australian bank account. As well, could you please suggest whether such deposits are legit or not?

1,007 views
1 replies
1,007 views
1 replies

Most helpful response

Most helpful reply

YEP(Devotee)Devotee
26 Apr 2024

You should be concerned.


If you ever get audited by the ATO they will require proof that those funds were actually given to you by your parents in law. If you do not provide evidence that is satisfactory to the ATO then you could be assessed on those funds plus penalties will also be applied.


The other ATO issue is that the ATO has special powers of full and free access to documents etc including the banks and they will be able to see exactly where those funds are coming from and then they will approach that depositing party and that could open up even more issues under any double tax agreements that may be in place.


Also, the banks have to comply with Anti Money Laundering legislation and if their systems pick up the transactions as suspicious the bank could do a number of things, depending on the bank, such as freeze your account and report the tranactions and then you will have some real issues to deal with.

All replies

Most helpful reply

YEP(Devotee)Devotee
26 Apr 2024

You should be concerned.


If you ever get audited by the ATO they will require proof that those funds were actually given to you by your parents in law. If you do not provide evidence that is satisfactory to the ATO then you could be assessed on those funds plus penalties will also be applied.


The other ATO issue is that the ATO has special powers of full and free access to documents etc including the banks and they will be able to see exactly where those funds are coming from and then they will approach that depositing party and that could open up even more issues under any double tax agreements that may be in place.


Also, the banks have to comply with Anti Money Laundering legislation and if their systems pick up the transactions as suspicious the bank could do a number of things, depending on the bank, such as freeze your account and report the tranactions and then you will have some real issues to deal with.

Featured articles

Finding your TFN

6 Feb 2026 · 4 min read time

Linking your myGov account to the ATO

24 Aug 2025 · 3 min read time

Spouse details and your tax return

15 Apr 2026 · 3 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3248 likes

  2. Taxduck

    (Taxicorn)

    2049 likes

  3. PayrollDeanne

    (Taxicorn)

    812 likes

  4. YellowPotato

    (Taxicorn)

    519 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10382contributions

  2. Taxduck

    (Taxicorn)

    4737contributions

  3. PayrollDeanne

    (Taxicorn)

    2047contributions

  4. YellowPotato

    (Taxicorn)

    1336contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Offshore income deposited in my Australian Bank Account | ATO Community