INTHEBLACK December - January 2022 - Magazine - Page 31
SEA CHANGE
Kris Fothergill FCPA is an old hand at working outside of Australia, and has some
advice to share with anyone considering relocating to another country, or in his case,
the high seas.
In 2019, Kris Fothergill FCPA, along with
his wife and four children, packed up their
home in Queensland and literally set sail
for a long-planned sabbatical aboard a
51-foot Dufour Gib Sea yacht.
Since then, they have sailed into New
York, waited out COVID-19 off the coast
of New Zealand and then Fiji, and made
their way through Central America and up
to Canada to stay ahead of the hurricanes
that gather over the Caribbean from June
to October.
Throughout the adventure, Fothergill
has continued to run his accounting firm
DIAGNO from the yacht. It is fair to say
the sabbatical has worked out very well
so far, he says, and that is largely down to
having an “awesome team” on the ground
in Australia.
Fothergill also says there are some
crucial steps to take before uprooting your
life and transplanting it for any period.
“Accountants and lawyers can help with
people planning to work elsewhere. They
can ask the important questions: Do you
plan to return to Australia? How long are
you planning to be out of the country for?
Are you still registered to vote? Do you
still have private healthcare? Where’s
your mail going? Where will you be
paying tax? All these things need to be
taken into consideration,” he says.
For Fothergill, the tax issue raises some
more questions.
“If you are doing the digital nomad
thing and you don’t necessarily have a
fixed address, the question is which
country is going to put their hand out,
and which one should you actually be
paying the tax to?
“For us, our last fixed address was in
Australia, so that is where we pay tax. It’s
worth doing the research and letting your
clients or your own employees know what
the tax implications are,” he says.
“There is no rule of thumb that says if
you’re out of the country for more than a
certain amount of days in a year, then
you’re a non-resident for tax purposes in
Australia. It’s not that clear cut. There are a
number of tests and each of those elements
needs to be taken into consideration.”
What about those contemplating a life
on the road, or the oceans?
“My number one piece of advice is to
seek professional advice that pertains
directly to your situation before you go. Just
because a colleague or a friend has been
given advice that relates to them, it doesn’t
mean that it will be the same for you.”
CLICK HERE
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podcast on remote
working, featuring
Kris Fothergill FCPA
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31
DEC 2022
JAN 2023
intheblack.cpaaustralia.com.au