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Original poster

Rishi's wife does not pay tax (millions!!) on dividends!

870 replies

FlowerArranger · 07/04/2022 06:16

From today's Guardian :

Rishi Sunak’s multi-millionaire wife claims non-domicile status, it has emerged, which allows her to save millions of pounds in tax on dividends collected from her family’s IT business empire.

Akshata Murthy, who receives about £11.5m in annual dividends from her stake in the Indian IT services company Infosys, declares non-dom status, a scheme that allows people to avoid tax on foreign earnings.

www.theguardian.com/politics/2022/apr/06/rishi-sunaks-wife-claims-non-domicile-status?CMP=Share_AndroidApp_Other

Anyone as outraged by this as I am? I mean what the actual fuck?

OP posts:
Thread gallery
5
Notonthestairs · 09/04/2022 21:17

So he gave his green card up 6 years after becoming an MP and 19 months after becoming Chancellor.

cakeorwine · 09/04/2022 21:21

The vast majority of people I know, who get dividends actually work for the company

Do you know how dividends work?

If you own shares in a company, you can get dividends. We used to have a family company and Grandma had a lot of shares in it. She didn't do any work for the company - she just went to the AGM, hassled the Chairman and waited to hear the Treasurer's report.

StormzyinaTCup · 09/04/2022 21:28

The vast majority of people I know, who get dividends actually work for the company

The vast majority of my clients will add their children as shareholders as soon as they turn 18 so that they can be paid a dividend. Very, very few work for the company.

Clavinova · 09/04/2022 21:29

So what does it mean when you have a green card for so long?

Maybe he just got used to having it.

cakeorwine · 09/04/2022 21:33

@Clavinova

So what does it mean when you have a green card for so long?

Maybe he just got used to having it.

And got used to filling in a US tax return as well?

And potentially paying US tax as well?

BritWifeInUSA · 09/04/2022 21:34

@Notonthestairs

So he gave his green card up 6 years after becoming an MP and 19 months after becoming Chancellor.
A green card is for residence in the US. They are issued with a validity of 10 years nowadays. However, if you no longer live in the US permanently, the card is actually invalid, even if the expiration date on it has not yet happened. The card is in date but the status (of legal permanent resident/LPR) has expired. When I was an LPR (I am now a naturalized US citizen) I had to confirm that I was still a resident in the US every time I passed through immigration here and was asked where I lived and worked, etc. he obviously lied. To government officials, no less.
Butfirstcoffees · 09/04/2022 21:37

@cakeorwine

The vast majority of people I know, who get dividends actually work for the company

Do you know how dividends work?

If you own shares in a company, you can get dividends. We used to have a family company and Grandma had a lot of shares in it. She didn't do any work for the company - she just went to the AGM, hassled the Chairman and waited to hear the Treasurer's report.

Yes. The comment I was responding to said that people who get dividends never actually do any work and don't earn them

I dispute that I am sure some may not. But as I said the blanket statement the pp wrote, is what is disagreed with. Your grandma, doesn't impact that many people do work in the companies they get dividends from.

I also said the vast majority of people I know who have them. Which would still make the blanket statement wrong.

cakeorwine · 09/04/2022 21:38

Invalid but still used for travel purposes?

"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."

Clavinova · 09/04/2022 21:41

C8H10N4O2
Whilst acting as Chancellor of this country he was telling the US government that the US was his permanent residence and long term home.

But thanks for supporting my point!

I don't know what the rules are regarding maintaining his status in the US - do you? With EU settled status, for example, you can spend up to 5 years in a row outside the UK. Perhaps maintaining a property in the US, bank accounts, frequent visits, membership of a sports club, registered with a doctor etc. were enough to fulfil the criteria.

cakeorwine · 09/04/2022 21:43

I also said the vast majority of people I know who have them. Which would still make the blanket statement wrong

I wouldn't say it was a blanket statement.
I'd imagine that most money from dividends comes from companies who invest people's money in shares.

cakeorwine · 09/04/2022 21:44

I don't know what the rules are regarding maintaining his status in the US - do you

I am sure that just paying US taxes was enough to keep them happy

Butfirstcoffees · 09/04/2022 21:45

@cakeorwine

I also said the vast majority of people I know who have them. Which would still make the blanket statement wrong

I wouldn't say it was a blanket statement.
I'd imagine that most money from dividends comes from companies who invest people's money in shares.

This is definitely a blanket statement

Why do we let ourselves be hoodwinked when people call money derived from dividends and shares ‘earnings’; they are patently not earned in any sense of the word

How is it not?

LoisLane66 · 09/04/2022 21:46

She CANNOT bring those earnings or the interest earned, into the UK unless she pays tax on whatever the amount is. She pays correct tax here on earnings here.
It's all above board. Her husband went into more detail than was requested when he explained her status. The only reason she is offering to pay tax on money earned abroad but not brought into the UK, is the hue and cry the general public have made over her status.
Her father started his life in poverty and by dint of hard work has raised himself up. All Ms Murthy's monies are rightfully earned and properly taxed in the country where it's earned.
Why do people have a problem with individuals who better their born position.
I wish she hadn't caved in.

One of my family works in Dubai where they pay no tax but those earnings can't be brought or sent here without attracting tax.

cakeorwine · 09/04/2022 21:52

This is definitely a blanket statement Why do we let ourselves be hoodwinked when people call money derived from dividends and shares ‘earnings’; they are patently not earned in any sense of the word*How is it not

You're right. I forgot myself in that statement and the fact that I earn dividends myself from my company that I own and definitely work hard for.

StoneofDestiny · 09/04/2022 21:52

This is just the tip of a very large iceberg. We only know because of who she is. No wonder wealthy folk want the Tories in. The whole system should be overhauled. We were told if the bankers were penalised for the financial crash they would up and leave- good riddance.
I don’t think she does anything special for the vast wealth, just pays people to look for loop holes ordinary folk can’t use

Yes - and despite the fact that the Chancellor, the PM and Rees Mogg Tory soundalikes are utterly clueless about how the majority of the population live and navigate through their economic policies - the voters of England (and I do mean England) will continue to vote these marginally moral people in.

LoisLane66 · 09/04/2022 21:52

I have shares in the National Grid and attend an annual weekend long 'meeting' in a hotel in London fully paid for. I also have shares in Hilton Hotels which issue dividends and other perks.
I have never worked for either business.

Notonthestairs · 09/04/2022 21:53

@BritWifeInUSA - thanks Brit. Really interesting to learn a bit more about the ins and outs.

Merryoldgoat · 09/04/2022 21:54

Why the fuck are they so willing to pay millions in tax they don’t actually HAVE to so Rishi can keep a £150k per year job?

Notonthestairs · 09/04/2022 21:55

@Merryoldgoat

Why the fuck are they so willing to pay millions in tax they don’t actually HAVE to so Rishi can keep a £150k per year job?
Power, influence or desire for public service. All three?
cakeorwine · 09/04/2022 21:56

One of my family works in Dubai where they pay no tax but those earnings can't be brought or sent here without attracting tax

So if someone goes abroad, works in Dubai, earns lots of money and comes back here, what happens to the money they earn?

If they bring it back here, do they pay tax in it?

How do they spend their money they earn in a low tax country when they return to the UK?

Butfirstcoffees · 09/04/2022 22:01

@cakeorwine

This is definitely a blanket statement Why do we let ourselves be hoodwinked when people call money derived from dividends and shares ‘earnings’; they are patently not earned in any sense of the word*How is it not

You're right. I forgot myself in that statement and the fact that I earn dividends myself from my company that I own and definitely work hard for.

Yes, you are the sort of people I am talking about

As I said, I have no idea if in this situation she does do any work. Genuinely don't know.

I just think it's really narrow-minded to claim no one who gets dividends doesn't earn them. Plenty of people are like you. Working hard and earning them everyday.

LoisLane66 · 09/04/2022 22:15

I think I read that her tax in India would be 30%

Neverreturntoathread · 09/04/2022 22:16

Boris is briefing against Rishi…

But will the country care?

Boris was in Ukraine today, became the only political leader to join the trans row on the side of sane people shortly before, and now Boris’ most likely successor is being criticised because his Indian wife pays tax in India. Boris is fighting for his job and he won’t fight clean.

Liz Truss, I’d watch your back if I were you…

EsmaCannonball · 09/04/2022 22:21

It's against US law for green card holders to stand for or hold political office in a foreign country. That's why questions were raised at the White House. He hasn't offered an explanation for breaking the law and seems only to have handed the card back because the Americans demanded it.

EsmaCannonball · 09/04/2022 22:23

The last time I looked Mauritius and the Cayman Islands weren't in India.