We would like to share a great news with our wider community in which we had helped one of our client to get a very large refund of over $125,000.
The client had sold a property, incurred capital gains tax, and got withheld of foreigner capital gain withholding tax of over $130,000, and she was recommend to come and see us from a real estate agent.
At the time, she was very depressed, as she has $130,000 less in her pocket, and she was quite pessimisstic in getting that refund back, as she is keenly aware, once the money had poped into the Australian Taxation Office’s pocket, sometime it is very hard or nearly impossible to get that money out.
Maximize Tax Refund for Client who had been withheld Foreigner Capital Gain Withholding Tax
Once we had took over the job, we examined the data thoroughly, and we then applied the tax file number for the client, and lodged all the overdue tax returns with the investment property.
This is essential, else if we lodge the return in the year when the client got the capital gain withholding tax, then most likely the ATO will take the initial action of asking the client to lodge the overdue tax returns with the investment property tax returns, and there would be compliance issue.
We then helped the client to do a pre-lodgement private ruling to ensure the ATO is happy with the tax position, and we spend around 1 month dealing with the ATO going back and forward in providing the evidences to the ATO and at the end, they agree to our tax position of a refund of over $125,000.00.
We then prepared and lodged the tax return, and once lodged, the ATO process the tax return, however, they withheld the refund and got internal team to investigate and they did not let us know who or how they going to examine the it, this is normal, as it is a large refund.
We waited for 3 weeks, and there is still no progress, then we contacted the assessor who did the private ruling, and she was happy to locate the person who is looking after the case, and she communited with the person, and showed all of the evidence, and the second day, the refund went throught to the client, the client was very thrilled and happy about it.