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Maximize Tax Refund For Foreign Capital Gains Withholding Tax

We would like to share a great news with our wider community we have helped one of our clients to get a very large refund of over $125,000.

The client sold a property, incurred capital gains tax, and had over $130,000 withheld for foreign capital gain withholding tax. Subsequently, a real estate agent recommended she see us.

At that time, she was very depressed about having $130,000 less in her pocket and was pessimistic about getting that refund. She knew that once the money goes to the Australian Taxation Office (ATO), it can be tough, if not nearly impossible, to get it back.

capital gains tax

Maximize Tax Refund for Client who had been withheld Foreign Capital Gains Withholding Tax

Thorough Data Examination and Filing

Once we took over the job, we thoroughly examined the data. Next, we applied for the tax file number for the client and lodged all the overdue tax returns, including those related to the investment property.

Preventing Compliance Issues

This step was essential. If we had lodged the return in the year when the client incurred the capital gain withholding tax, the ATO would likely have initiated action, requiring the client to lodge the overdue tax returns for the investment property. Consequently, this could have resulted in a compliance issue.

Obtaining a Private Ruling

Subsequently, we assisted the client in obtaining a pre-lodgement private ruling to ensure the ATO was satisfied with the tax position. We spent around a month communicating back and forth with the ATO, providing evidence. Ultimately, they agreed with our tax position, resulting in a refund of over $125,000.00.

Finalizing the Tax Return

Finally, we prepared and lodged the tax return. After lodging, the ATO processed the return but withheld the refund. They initiated an internal investigation without informing us of the specifics. This is typical for large refunds.

We waited for three weeks with no progress. Then, we contacted the assessor who handled the private ruling. She was willing to locate the person managing the case, communicate with them, and present all the evidence. The next day, the refund was processed for the thrilled client.

If you intend to sell your dwelling, please get in touch with us at 0410 829 900 or email us at

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