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To: TobagoJack who wrote (92219)	7/5/2012 9:27:56 AM
From: elmatador	Respond to of 217749

Brits in Spain Being Targeted by the Taxman The Spanish tax authority is targeting British expats it suspects of inadvertently or even deliberately avoiding tax shelteroffshore.com

To: TobagoJack who wrote (92219)	7/5/2012 9:35:43 AM
From: elmatador	Read Replies (2) \| Respond to of 217749

Country of origin also want its pound of flesh: Expats could face 30 years of tax bills HM Revenue & Customs has reissued its guidance to expats claiming residency abroad as a result of a Court of Appeal decision about 'non-doms' who left the UK for tax purposes. The case against Robert Gaines-Cooper, who was claiming residency in the Seychelles, hinged on whether he had actually remained resident in the UK for tax purposes. He was relying on guidance issued in IR20, that he was spending fewer than 91 days a year in the UK, which had included not counting the days of arrival and departing. The Court of Appeal upheld that the guidance issued by HMRC was binding. But it found against Mr Gaines-Cooper, as it felt he did not fall within the terms of the guidance, according to a spokesman for Withers, a law firm. The spokesman added: "There has been a great deal of interest in this case and in particular that Mr Gaines-Cooper was found to have never left the UK, notwithstanding that he claimed to have spent less than 91 days a year in the UK, although the facts were disputed. "However, one of the great myths of tax planning is that spending less than 91 days or nights in the UK is sufficient for an individual not to be treated as resident here. Related Articles Non-dom: do you qualify? 17 Mar 2010 "This is not and never has been the case and the test of whether or not an individual should cease to be treated as UK resident is much more complicated and uncertain, as Mr Gaines-Cooper has found to his cost. "To cease to be treated as UK resident, a taxpayer has to make a distinct break of ties with the UK and to properly establish himself in another jurisdiction. As such, it is a question of fact in each case, and a question of all the facts of an individual's lifestyle, not simply the number of days spent in the UK. "As the Court of Appeal noted, while an individual who spends more than 91 days a year in the UK will be treated as a UK resident – although this is not always the case – spending less than 91 days a year in the UK does not necessarily mean that he will be non-resident. In fact, it is apparent from case-law that it may be possible for a taxpayer who does not step foot in the UK for a whole tax year still to be treated as UK resident for tax purposes if they have not properly established themselves abroad." Sean Drury, international mobility partner at PricewaterhouseCoopers welcomed the judgment as it emphasised that "HMRC should rely on UK tax residency guidance as outlined in IR20 and that employees were not required to sever family or social ties with the UK. "There had been a lack of clarity and increasing HMRC scrutiny of taxpayers who legitimately ordered their affairs in accordance with published HMRC guidance to become non-resident in the UK. "While companies may take some comfort from the viewpoint of the courts, the withdrawal of IR20 in April 2009, and only draft guidance in place since, means terms around the meaning of residency in the UK are still unclear." However, IR20 was replaced by HMRC6, which was further updated last month as a result of changes brought in which relate to the remittance basis rules. HMRC6 also outlines the guidance for those looking to seek residence outside the UK, but is specific about this guidance not being relied on in court, said the Withers spokesman. The case is symptomatic of the Revenue's increasingly aggressive stance to residency status, the spokesman added. Julia Whittle of Punter Southall, said: "Over one million people have left the UK to live abroad in the last six years. Many of these, and many of the estimated several million more who have left the UK over the past 20 years, do not realise that they could still be liable to UK tax. The Court of Appeal ruled that Mr Gaines-Cooper, along with two other businessmen, were all still liable to tax in the UK, despite living abroad – in Mr Gaines-Cooper's case for over 30 years – and not coming back for more than 90 days a year. "The argument was that he hadn't shown 'a distinct break' from the UK and the 'centre of gravity of his life and interests' remained here. Worryingly, there is no limit to the amount of tax that can be claimed back. In his case it could be as high as £30m. "This could have serious consequences for many expats who have children at school in the UK, retain a property or asset, or have significant connections here. If the case against you means that you are still considered resident in the UK for tax purposes, all your worldwide assets will be included in the calculation for assessing your liability since you 'believed' you left the UK." telegraph.co.uk

To: TobagoJack who wrote (92219)	7/6/2012 4:24:36 PM
From: Maurice Winn	7 Recommendations Read Replies (2) \| Respond to of 217749

Bad idea; <President Francois Hollande wants to hike taxes on foreign-owned second homes as part of his plans to revive the nation's ailing economy and fill an £8billion hole in its budget. > Just today I was contemplating buying an apartment or house or something in the south of France where I am currently. That would have brought in a bunch of money to France, and spending money as well. Now, I can happily forget about it and consider somewhere more welcoming. They will get LESS money as a result of their dopey idea, not more. House prices will fall as foreigners abandon properties. Mqurice