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Hi, I am employed by a trading platform in USA, money will be getting transferred to my account to purchase iTunes cards and traded for bitcoin. I will be getting a monthly wage. My question is, will I only need to pay tax on my wage of $3500 per month ? OR will I get slammed paying tax on the massive amount of money this company are putting into my account to purchase the iTunes cards for them?
Responses
you will get slammed.
your assessable income will include payment "in kind" as well as the traditional wages.
regards
Brendan
Hi Kellie,
You need to get the full details of money in and out recorded in a ledger. Otherwise i'd back Brendan and his advice.
From your quick note above, it may be prudent to have a separate bank account for the funds coming in, where you can identify the purchases of iTunes cards against it.
While the ATO's advice may not be wrong specifically, they are not bound by the phone advice. If you have notes of the phone call, it may help save you from major penalties in the event of an audit.
Have written contract/instructions from your employer to qualify the activities you are undertaking.
The ATO and other government organisations monitor funds coming into the country, and often question these sort of activities where there isn't a sufficient level of detail in your tax return.
Get Audit Insurance and a good accountant.
Hi Brendan, I called ATO, spoke with a trading and foreign exchange person, apparently it's all good to do this as it's not my money going in to purchase the iTunes cards. I only need to declare (once a year) my wage income, I must keep receipts and bank statements for proof, then all is ok.
Thanks for your reply.