Outsourced translator charging witholding tax on invoices to resident of Australia?? Help/advice requested

[Sandra Ogata]

Dear Yakkers,

I raised this question as part of Kyle Hecht's recent post, but realised it should be a post of its own.

I live in Australia and am taxed here. Australia and Japan have a taxation agreement.

My main client does not withhold tax because of this (18 years ago, it took some convincing them though).

I have just realised that an agency, who I have been using for the same amount of time as my main client, and outsource other languages to, has been charging me tax. About 6 months ago, I contacted them regarding this. They have said they realise that they should not have been doing so, and said they would look into everything past the current tax year, as the money has already gone to the taxation office in Japan.

(Their most recent invoices now show no tax being charged.)

I am still waiting on what they are going to do about it, but thought to see if any of you had experienced this or have any advice. I would think there would be more than $10K involved, so I figure it is definitely something to pursue.

I would welcome input.

Thanks so much.