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Re: Non Resident with Australian Income + HELP Debt

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Devotee Registered Tax Practitioner

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We lodged a tax return for a non-resident taxpayer with $ 6391 Australian income and $ 104,933 foreign employment income entered at lable 20B exempt foreign income.

 

He was assessed correctly on his Australian income, but the assessment notice changed the return details to adjust out the 20 B amount.

 

Result was that his Notice of overseas levy showed world-wide income =  $ 6391  and HELP overseas levy  =  0.

 

After a number of phone calls to ATO starting 07 November, we eventually had a call back today to be told:

 

1.  Do not show at label 20 B because that is only for resident taxpayers with exempt foreign employment income

2.  Put their exempt foreign income at label 20 E  +  other attachment to explain that the foreign income is shown in order to generate a HELP debt repayment.

3.  Refer to QC 47358  -  but that is all about the requirement to disclose, not how to disclose

 

I put the view that we had made a disclosure of the taxpayer's foreign income, and ATO chose to ignore that disclosure.

 

Our software supplier was less than helpful when we said that the software was not calculating a HELP debt repayment  -  because Notice of overseas levy was outside the scope of the tax assessment.

 

So my questions are:

 

1.  Should I now amend 2019 with label 20 E and an attachment?

2.  Is there a better way of meeting the taxpayer's HELP debt obligations?

3.  Is there an ATO instruction that specifically deals with entering the numbers into whatever form is required?

 

We have more than one taxpayer in this position.

 

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ATO Certified

Devotee

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Hi Bruce

 

The PLS software should have the capability to lodge a Non-resident foreign income schedule.  That will then create the HELP or TSL debt for a non resident.

 

https://www.ato.gov.au/tax-professionals/services-and-support/in-detail/practitioner-lodgment-servic...

 

Hope that helps.

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time

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ATO Certified

Devotee

Replies 1

Hi Bruce

 

The PLS software should have the capability to lodge a Non-resident foreign income schedule.  That will then create the HELP or TSL debt for a non resident.

 

https://www.ato.gov.au/tax-professionals/services-and-support/in-detail/practitioner-lodgment-servic...

 

Hope that helps.

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time

Devotee Registered Tax Practitioner

Replies 0

Thank you. 

 

Lodged an amendment with the schedule + income shown at 20 E as directed, but software did not calculate HELP repayment.

 

Will advise further when result of amendment appears on Online Services.

 

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