After saying her Indian citizenship meant she was not domiciled for tax purposes, Akshata Murty has changed her mind and will voluntarily pay taxes:
“My decision to pay UK tax on all my worldwide income will not change the fact that India remains the country of my birth, citizenship, parents’ home and place of domicile. But I love the UK too. In my time here I have invested in British businesses and supported British causes. My daughters are British. They are growing up in the UK. I am so proud to be here.”
Labour are twisting the knife, they want to know about Rishi’s tax haven benefits:
“Far too many troubling questions remaining. This urgently matters because the Chancellor – the person in charge of our tax system and responsible for loading working people with the highest tax burden in 70 years – will still benefit from Ms Murty’s tax arrangements.
With startling new reports today of the Chancellor being listed as a beneficiary of tax haven trusts, nothing less than full transparency can be expected. Any further obfuscation cannot be tolerated, and it would be beyond shameful of the Chancellor if he does attempt to do so.
He should be leading by example on tax with clarity and integrity – not outrageously dismissing perfectly reasonable questions and then conceding on them days later.
Is Ms Murty still saying her permanent home is not the UK, and if she is – will she claim inheritance tax benefits via the tax treaty with India?
Why did Ms Murty’s spokesperson and the Chancellor in his Sun interview claim that this is not possible to pay British tax given her Indian Citizenship? Was the Chancellor simply ignorant of how the rules work or did he lie?
“Given she now accepts the importance of fairness and that it was wrong for her to claim to use her non-dom status to not pay full taxes here will she agree to paying back all the tax she saved through the arrangement?”
Suspect Sunday’s papers will be subjecting the story to some scrutiny, it does have holes in it that Labour will demand explained…
The revelation that as well as Murty being non-domiciled for tax purposes, the Sunaks were US green card holders, adds to their woes because holders of a US green card are required to pay US taxes on their worldwide income, and to pledge the US is their forever home. The IRS may want to scrutinise her return closely. Given the briefing has been implicitly that Akshata Murty pays her Infosys dividend taxes in India as she intends to return to India as her “final resting place”, this is a contradictory pledge.
Sky News’ Sam Coates has been told that the Sunaks held US green cards, permitting them residence, “until more than a year into his chancellorship – before then giving it up during his period at the Treasury”. This is not in itself a problem, New York-born Boris had one, though Her Majesty’s Chancellor of the Exchequer having to file a US tax return whilst in charge of the Inland Revenue is an unexpected turn of the events. To get that green card, applicants pledge to Uncle Sam to “make the US your permanent home” – though in reality that pledge is not strictly policed. Coates quotes a source as saying that “neither of them have green cards”, without denying they had them during his period as Chancellor. All very awkward. The usually sympathetic ConservativeHome says his position is unsustainable…