I AM FURIOUS WITH YOU

Scott,

I have a question -- and then I have a complaint. First the question. My wife and I run a successful business and earn income both in Australia and the US. I have just obtained an ITIN (Individual Taxpayer Identification Number) for the US. Is it worth splitting our income between the two countries?Now the complaint. In your columns you have made some not-too-polite references to ‘Hair in a Can’. Well, our top product is GLH ‘Hair in a Can’, made here in Australia and exported all over the world. It is No. 1 in its category on Amazon on the back of what is considered the most successful infomercial on US TV, with amazing high-repeat sales. Our product goes back to the ‘Fabulous Baker Boys’ movie. Stop using it in a derogatory way.

Bill

Hi Bill,

This is a very big call given how early in the year it is -- but you, my friend, are already in the running for the best letter of the year.

Let’s deal with your tax question first. As an individual your starting point is to determine whether you are classified as being an Australian resident for tax purposes (the ATO has a nifty online tool that'll help you work it out). If you are, the ATO will tax you on your worldwide income from all sources. If you’re not, you’ll only be subject to local tax on your Aussie-sourced earnings.

That being said, if you're running a successful business with international earnings, I'd strongly suggest you get professional help you wade through the 73,954 pages that is the US tax code.

Now, let’s talk about spray-on hair in a can.

Bill, I’ll be honest, at first I thought you were pulling my hair. However, a few clicks showed me that you’re ridgy didge: GLH stands for Good Looking Hair, and a few more clicks showed me that you are a bestseller on Amazon. Well done! I love it when an Aussie company kicks it on the world stage. There is obviously a huge market for your product, especially in the US. My tip is to come out with an angry-orange color: Trump would love it.

Scott