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10 March 2020
A company by the the of Advisor Limited based in Victoria. Issued investors with a notice that before their investments are released the should first pay 20% Tax to the ATO.
We as invsetors found it strange that seeing that our investment are held by the company, Why dont the just deduct the ATO 20% and release our invsetment.
They keep on saying foreigners dont always pay their tax so they are obliged to collect it first.
Is this the usual practice in Australia,
The investors are from Other countries outside of Australia.
12 March 2020
Thanks for your question .The ATO would not ask to pay any taxes prior to investment income/funds are released to foreign investors
Please have a look at the ATO website when to withhold on investment income and royalties paid to foreign residents.
This may give you a better understanding of when to withhold and pay taxes for foreign investors.
Hope this will help.
Australian Taxation Office
Working for all Australians