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Re: Received Court Settlement from overseas

Newbie

Views 82

Replies 2

Hi have another quetion,

I recieved a large sum from court settlement from overseas (Canada).

Do I require to disclose this in my tax return and will I be tax for it?

Thanks in advanced.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @adam D73,

 

@TaxedoMask is right.

 

It depends on the type of settlement and your tax residency status in Australia as to whether the amount would be considered taxable foreign income.

 

In some instances (such as some forms of personal injury claim compensations) then these amounts are considered tax-free (exempt income), however they may still need to be declared or used in other tax calculations when completing the tax return.

 

I've found a few other forum posts that explore different types of settlements, and they may contain some useful information. So if you're interested, take a look at 'Personal Injury Settlement', 'Divorce settlement- funds from overseas', and 'Class action shareholder settlement'.

 

RachATO

 

2 REPLIES 2

Devotee

Replies 1

Unlikely but would depend on the full facts and circumstances on what the court settlement was in relation to and your tax residency during the event which lead to the settlement.

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @adam D73,

 

@TaxedoMask is right.

 

It depends on the type of settlement and your tax residency status in Australia as to whether the amount would be considered taxable foreign income.

 

In some instances (such as some forms of personal injury claim compensations) then these amounts are considered tax-free (exempt income), however they may still need to be declared or used in other tax calculations when completing the tax return.

 

I've found a few other forum posts that explore different types of settlements, and they may contain some useful information. So if you're interested, take a look at 'Personal Injury Settlement', 'Divorce settlement- funds from overseas', and 'Class action shareholder settlement'.

 

RachATO