Rishi Sunak faces questions over wife Akshata Murty's non-dom tax status

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@ Long Driver, Now THAT IS a load of old Blox LD !!
Donkeyman! :hugs::hugs:

@Boot , Shamed into it ???
Donkeyman! :+1::smiley::smiley::+1:

Or to take the wind out of the sails of her husband’s critics?

Hi

What she is doing is legal, so no fault at all.

The issue is that it is legal and the ordinary person has to pay full tax but the very rich can just claim that they do not actually here and that they will be going home to die.

It is a stupid law which needs to be abolished.

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@Boot , Too late for that, should have done it straight away!!
Shows they know it was unethical ??
Donkeyman! :-1::-1:

More here:

Her decision to change her tax arrangements follows accusations of hypocrisy against the chancellor, with opposition parties saying Mr Sunak’s family is benefiting at a time when the cost of living is going up.

The BBC estimates Ms Murty would have avoided £2.1m a year in UK tax through her non-dom status.

Ms Murty said her tax arrangements had been “entirely legal”, but added: "It has become clear that many do not feel it is compatible with my husband’s role as chancellor.

“I understand and appreciate the British sense of fairness and I do not wish my tax status to be a distraction for my husband or to affect my family.”

but

Ms Murty will retain her Indian citizenship and her non-dom status which, as the BBC revealed, allows her family to avoid paying inheritance tax in the UK - which at current valuation could amount to £280m.

In her statement, Ms Murty also said she would now be paying UK tax “on all my worldwide income, including dividends and capital gains, wherever in the world that income arises”.

“I do this because I want to, not because the rules require me to. These new arrangements will begin immediately and will also be applied to the tax year just finished (2021-22),” she added.

… and there’s still the matter of the Green Cards:

Chancellor Rishi Sunak held a US green card - allowing permanent residence in that country - while he was chancellor, his spokeswoman has said. He returned it in October last year, ahead of his first American trip as a UK government minister.

As stipulated in the rules, Mr Sunak filed US tax returns while he held his green card, his spokeswoman said, “but specifically as a non-resident, in full compliance with the law”.

She added: “As required under US law and as advised, he continued to use his green card for travel purposes. Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.”

I have no idea how Green Cards would assist Sunak’s travel purposes but it does seem that there are strict rules about the use of such cards, including:

Reentry Permit for Long Trips

If you believe you’ll be staying outside the United States for a year or more, you should get a reentry permit before leaving. See Reentry Permit Process for U.S. Permanent Residents.

If Returning After a Long Trip: Reentry Permit

If you have been away for more than one year, you will also need either a Reentry Permit or (if you have been away for two years or more) a Returning Resident Visa to reenter the United States. For more information on why you might need one of these and how to apply, see Abandonment of Residence by U.S. Green Card Holders.

Even if you have been away from the United States for less than a year, you can be denied reentry if it appears that you cut ties to the U.S. and made your home elsewhere, which is called “abandonment of residence.”

Although the immigration authorities start to look hard at returning residents after trips of six or more months or more, it is technically possible to abandon your U.S. residence in as little as a day. It’s all about your intention when you left the United States.

The customs and border inspectors will look at things like whether you are routinely employed abroad, whether your primary family members are citizens or permanent residents of a foreign country and where they actually live, whether you still have a fixed address in the United States, and whether you frequently spend extended amounts of time outside the United States.

Well, the Sunaks certainly made their “home” elsewhere but Rishi’s seems to be the UK and Akshata’s seems to be India … :017:

@Omah , Well she deserves credit for doing it !!
Be interesting to see how many other Dodgers follow her example
though !!
Donkeyman! :roll_eyes::roll_eyes:

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That’s the thing with tax though

You sort of can’t blame people for finding loopholes to pay less, as long as it’s legal

But funnily enough, the loopholes all tend to favour and help out the already reasonably well off or wealthy, or the Tory cronies

There aren’t many tax loopholes for the poor bloke on a low wage on PAYE to do a bit of tax dodging

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That’s why the well-heeled have tax accountants to do their tax returns for them, Maree. When we had a rental property, V and I had an accountant just for this purpose, even though we were already paying PAYE tax on our pensions. More often than not, she got us discounts on our total tax bills that more than paid for her fees.

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You can bet your bottom £, $, €, Rupee or whatever that her taxable income will be “gone over” by expert tax accountants and ways and means will be found to mitigate her tax payable. I’ll bet you a £ to a penny she won’t be paying £4million or anything like it.

Well, yes, an accountants job is to milk the system and find those loopholes for their clients

HMRC’s is to close them and the Governments is to pass the legislation to allow HMRC to close them, which they always seem very reluctant to do

That’s the unfair bit. They leave these chances to wriggle out of paying tax open for those with money to exploit. While the poor bloke with no income but a low salary has to cough up in fall

And I think it’s because the government wants to favour their sponsors and voters with a bit of dosh while they screw the little guy for everything he’s got

And that is Governments of all Political Stripes and persuasions not just the Tories.

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Well, we’ve only had Tory governments for a good few years now and not much progress

And the Tory party exists to protect their own,the privileged

So I’d say the lack of action is deliberate

And 13 years of New Labour prior to 2010 with zip being done about loopholes also.

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Non-dom status “wears off” after 15 years and the person is subject to all tax requirements of a UK citizen - including on their estate.

But there is an exception for Indian citizens around inheritance tax.

A technicality means that even if Ms Murty agrees to pay UK taxes on her worldwide income, but retains her non-dom status, she can still benefit from a provision in a 1956 treaty that was designed to stop Indian citizens being double-taxed on their estates in the UK and India.

Ms Murty earns money from shares in an Indian software giant founded by her billionaire father.

India abolished inheritance tax in the 1980s, but this tax exemption was never revoked.

So Ms Murty could have her estate taxed there at zero upon her death, rather than in the UK at 40% - saving £280m on her £700m stake in the company founded by her father.

Like her current reduced tax rate on her worldwide income - this would be perfectly legal, and HMT Treasury has said that the chancellor provided all relevant information on his interests when he became a minister.

As Chancellor, Rishi Sunak has ultimate oversight of all fiscal matters in the UK. That includes regular reviews of the non-dom rules.

Reviewing rules which directly affect the financial arrangements of his own family members seems uncomfortable at best, a direct conflict of interest at worst. Others, including the chancellor’s political opponents, have suggested that Mr Sunak should move his power over non-dom policy to another department.

“Shifty” Sunak will find a solution … :wink:

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His allies say very few people had access to the personal information, which Mr Sunak declared to Whitehall officials when he became a minister in 2018.

So why was “Shifty” Sunak keeping his wife’s tax avoidance unavailable and secret? Presumably it part of his “squeaky-clean” self-branding campaign for high government office.

I see the knives are still out for Dishy Rishi :wink:

Looks like it must have blotted his copy book somehow as his wife has not done anything legally wrong .
Others are non dom ( not domiciled for tax in the U.K. )
Prominent peer and Tory donar Lord Michael Ashcroft is one .

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