# Giving up Permanent Residency



## BrownBobo (May 30, 2013)

If I apply to DIAC to have my Permanent Residency cancelled, will the PRs of my dependant (wife & kids? also be cancelled or their PR stays? While I want them to stay in Australia, I need to leave Australia and for some reasons it will not be advantageous to continue holding the PR.

In a few years time, I will like to re-apply for the PR on the basis of family ties, will this be approved by DIAC or will there be significant huddles to cross?

Your informed opinions will be appreciated.


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## espresso (Nov 2, 2012)

Hi BrownBobo, 

no, they hold PR in their own right now, no matter how they "got there". If you and your wife got divorced that wouldn't change their visa status either. 

Your wife could theoretically sponsor you with a partner visa to allow you to "re-gain" your PR. I'd suggest to check with a migration agent/lawyer before you proceed, though. Moreover, immigration law changes all the time so who knows what the rules are when you want to come back. 

Unlike US citizens Australian PR holders don't have to pay tax on their world-wide income. I'm wondering what other potential issues of just keeping it I could have missed... care to give us a hint or is it something private? 

Cheers, 
Monika


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## jre05 (Feb 16, 2013)

BrownBobo said:


> If I apply to DIAC to have my Permanent Residency cancelled, will the PRs of my dependant (wife & kids? also be cancelled or their PR stays? While I want them to stay in Australia, I need to leave Australia and for some reasons it will not be advantageous to continue holding the PR.
> 
> In a few years time, I will like to re-apply for the PR on the basis of family ties, will this be approved by DIAC or will there be significant huddles to cross?
> 
> Your informed opinions will be appreciated.


Sad to read that you want to give up PR now  Hope you get it all better ending


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## _shel (Mar 2, 2014)

jre05 said:


> Sad to read that you want to give up PR now  Hope you get it all better ending


 He doesnt want to give up his PR so much. Its his barmy tax avoidance scheme.

OP you realise TAX A AVOIDANCE is a crime and would certainly hinder your chances at passing the character requirements of any future application for a visa. Yes they would have information relating to your crime given government departments share information easily!


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## AncientGlory (Aug 23, 2012)

espresso said:


> Unlike US citizens Australian PR holders don't have to pay tax on their world-wide income.


HI Monika,

The ATO website says,



> Australian residents are generally taxed on their worldwide income from all sources


https://www.ato.gov.au/individuals/international-tax-for-individuals/

I'm a bit consfused now . What does this mean then?


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## espresso (Nov 2, 2012)

Hi AncientGlory, 

check the Will your tax residency change? article on the ATO website. You can also use the Determination of residency status calculator. As an Australian PR holder you are _not_ automatically are resident for tax purposes. For instance, if you validate your PR visa and then return to Srilanka with your family, you will not be an Australian resident for tax purposes. On the other hand, if you own a house in Australia and are overseas on assignment from your company - living in a hotel - you are most definitely still an Australian resident for tax purposes. The criteria to determine tax status are: 



> how long you will be away from Australia
> whether you will return to Australia during this period and, if so, how frequently
> the type(s) of accommodation that you will live in while away from Australia
> your reasons for leaving Australia and the activities that you will be undertaking while away from Australia
> whether you will retain any connections with Australia


Personally, I would not wish to anger the taxation authorities, whether Australian or Austrian. Life's too short for that kind of stuff.


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## _shel (Mar 2, 2014)

Me too and its always joe bloggs, normal working guy they go after despite losing way more from millionaire individuals and company tax avoiders. But thats the way it is  

I know a guy here in the UK sent to prison for 12 months (18 month sentence) for under declaring his income. He's a taxi driver so hardly the highest earner.


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## AncientGlory (Aug 23, 2012)

espresso said:


> Hi AncientGlory,
> 
> check the Will your tax residency change? article on the ATO website. You can also use the Determination of residency status calculator. As an Australian PR holder you are _not_ automatically are resident for tax purposes. For instance, if you validate your PR visa and then return to Srilanka with your family, you will not be an Australian resident for tax purposes. On the other hand, if you own a house in Australia and are overseas on assignment from your company - living in a hotel - you are most definitely still an Australian resident for tax purposes. The criteria to determine tax status are:
> 
> ...


Ok, I see what you mean there. OP would not have to pay taxes if he return back to USA. Thanks Monika.


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## espresso (Nov 2, 2012)

Hi AncientGlory, 



> OP would not have to pay taxes if he returns back to USA.


Well, it depends . If his family remains in Australia and they either own or rent a property and he is the primary earner and visits frequently, he will likely remain a resident of Australia for tax purposes. If he was divorced/separated from his wife, probably not. I'd strongly recommend to consult a tax agent in situations like that. Refuting PR to avoid tax does not sound like a good idea to me. With PR you can at least hop on the next plane and return to Australia if anything happens with your family or if you just want to see them...


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## _shel (Mar 2, 2014)

True Monika, I don't think some people realise that visa status has little impact on your tax residency status. Hence why people on student and working holiday visas are tax resident and have to file a tax return whilst someone with a PR visa can not be a tax resident if they live outside of australia!


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## Waqarali20005 (Oct 7, 2013)

_shel said:


> True Monika, I don't think some people realise that visa status has little impact on your tax residency status. Hence why people on student and working holiday visas are tax resident and have to file a tax return whilst someone with a PR visa can not be a tax resident if they live outside of australia!


true moderators on this small forum shows its importance , well for taxation purposes, residence status of a person is calculated based on his presence in a country in a fiscal year. rules vary from country to country..


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## Redtape (Jun 25, 2013)

Hi All,

I'm not a great tax expert though I've done myself last time. I saw the same clause on e-tax software. May be this would give you some more information that we are talking about.

Cheers Guys.


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## Redtape (Jun 25, 2013)

Further, I can give you more info under each category. Let me know if that helps.


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