To think it sets a really bad example for the country when the PMs family have tax dodged millions

[Chloefairydust]

Just that really…

Im really surprised Sunak actually made it to be prime minister considering the recent stories that have been in the news regarding his family avoiding millions of ££ in tax . I actually thought Boris would have been more likely to have been PM. (Not that he’s any better🤔)

She paid tax in India , declared everything to HMRC. End of story.

Also note the absence of any comment in the media articles about the indian tax she will pay. The Indian tax system is way more aggressive than ours so its unlikely she's significantly at an advantage paying tax there vs here

Of course they would and they'd claim it's different for them.

And they haven't managed to do anything about Amazon or Starbucks either. So I don't hold out much hope.

But you know, those of you who think its a "legal loophole", do you fancy having the same income taxed twice by two different countries? No?

Also seeing the bigger picture here, OECD agendas for the past few years are all about levelling the playing field on tax - such that countries like India are likely to get a better chunk of it and countries like UK and US may get less. So get used to it.

She's given up her non dom status now, correct? So the story thus ends.

Yes with kids at school here she’s very unlikely to return in the ten year period. So that’s bad if she knows she won’t be returning. Obviously nobody could prove her intentions

You have to question how she got away with holding that non-Dom status for so long, before letting it go. Clever. But morally questionable.

How dare an Indian pay Indian tax on Indian dividends.

Not quite the same as say Tony Blair or the Guardian's owners using loopholes to reduce their tax exposure.

She was very carefully non-specific about which taxes she was paying where. I'd eat my hat if she was holding all her assets in India and paying CGT/dividend tax/IHT there. If she was, then surely she'd have said so,

But this shouldn't be allowed to happen. Ideally. Nothing wrong with non-Dom rules, they are there to serve a purpose. But she?

Stay in any country for 10+ years, raising your kids. But claiming non-Dom? Nah. I don't think so.

And like I said I'm not talking about her case specifically. I'm talking about general cases. you have to admit that this doesn't sit right with many of us.

Totally agree. Its a completely unfair system. I wonder if Rishi and his chancellor will do something about this in their future budgets. He's been saying we need to tackle the UK deficit and this would be an easy way to raise more tax

I'm surprised how many people on here are defending non domiciled tax rules for a wealthy few especially when so many threads are about cuts to services. There will be tax increases coming our way so I assume all the posters in favour will be happy for their burden of tax to go up so that wealthy non doms can keep their perks.

Eh? Of course it is. Not paying tax on earnings legally is tax avoidance.

However what people with their repetition of the definition of tax avoidance vs evasion seem to be not getting their head around is that, as a member of the government, he is the one writing the rules. You could argue that we could
all set up a shell company in The Cayman Islands or Panama but it’s very expensive so only
works if you are super rich. He is not the only
pm to use tax avoidance loopholes and while
we vote in conservatives, he won’t be the last. Even Blair used a shell company in a tax haven to buy his house to avoid cgt. Cameron’s father was a name in the Panama papers.

Whilst us regular Joes keep paying PAYE and tax on our dividends and banging on about it all being legal, they will still takes us for the mugs we are. If we closed these loop holes for the super rich, we might not die waiting for an ambulance.

I agree. It is surprising this is brushed over.

Non dom status is for people whose permanent home is outside the UK. She is married to a British man and her children are in school here. In what sense is this not her permanent home?

She obviously is able to technically claim that she intends to move back and that this is just a temporary sojourn in the UK. But we can all see that this is bloody dodgy and only done to avoid paying tax.

That's why they have stopped doing it. Only once they were found out.

She's not British, she's used a legitimate mechanism to avoid tax. Do I think these mechanisms should exist to avoid tax - no, did she do anything illegal - also no

Good idea.

Let's apply the test "does it look good" to everyone's Tax.

Oh hang on, I don't think it looks good that anyone who earns over £30,000 should get tax relief for pension contributions.
I think its disingenuous and those who earn over £30k can afford to pay the tax. I'll criticise anyone whose pension contribution are taken out of thier pay before paying tax.

Tax dodging arseholes.

Oh FFS.

Look, I worked for HMRC for over 30 years, the last 10 in Compliance (investigation).

SHE HAS NOT DONE ANYTHING WRONG. NOT EVASION. NOT AVOIDANCE. NOT IMMORAL.

Educate yourself before you post absolute BOLLOCKS.

Well, to claim non dom you have to have a genuine intention to return to your home country. So if she doesn't genuinely intend to do that then yes she absolutely has done something wrong.

I've never heard of declaring or any sort of 10-year rule, can you clarify what you are talking about? I believe you do not apply for non-dom status, nor do you declare anything to anyone to get it. It's a legal fact about you that is either true or false.

The only issue is how she is taxed, given that she is a non-dom. Being a non-dom is odd, because it gives you the option to calculate tax owed on foreign income in two different ways, and you are explicitly allowed on the self-assessment form to choose whichever way you prefer.

@minou123 that's not the same at all. That's a simple qualification based on facts.

The non dom stays depends on a stated intention to do something in the future (return to India). If she had no such intention of leaving her husband and kids here in the Uk then she should not have made that claim.

Good idea.

Let's apply the test "does it look good" to everyone's Tax.

Well you don't have to apply it to everyone but usually the Prime Minister of a country does want to look good to their voters!

Well, it does actually.
If there is a means for you to not pay as much tax wouldn't you take it? Of course you would.

Nobody is defending non domiciled tax rules.
There is a huge difference between not liking tax rules, (thinking they are unfair) and understanding legitimate provisions which help people reduce thier tax.

Do you have an ISA?
If someone said to you that you are dodging tax, you are using a loophole and its tax avoidance, what would you think?
I could argue, that by not paying tax on interest, you are in favour of increasing the tax burden for everyone else, just so you can keep your "perk" of having an ISA.

If this thread was about the unfairness of Non-Dom Status and it needs an overhaul, then I'm in complete agreement.
But then again think a lot of tax reliefs schemes and allowances are unfair and need an overhaul, so we could be here fir a while. 😁

This is well put. It may have been legal but it's not really ethical (unless you are genuinely in this country for only a couple of years). However, it has been addressed and isn't a reason for Sunak not to be PM

Evidence?