Nichola Ross Martin believes
"A judicial review of the Gaines-Cooper case would be timely"
Residence and domicile in the firing line. Tax case report.
By Nichola Ross Martin
Reproduced with the kind permission of AccountingWEB
Do you remember the case of Shepherd v. HMRC [2005] STC (SCD) 644? This was the residence case concerning a long haul airline pilot, in which the special commissioner Dr. Brice, ignored HMRC’s guidance on the "90 day rule," as detailed in the publication "IR20 Residents and Non-Residents - Liability to tax in the United Kingdom."
The commissioner preferred the tried and tested method of looking at case law and of course statute. The Shepherd case was a very important one, not just for long haul airline pilots, but because it illustrated the practical difficulties and the numerous uncertainties that exist in this area of tax. The result could have prompted parliament to get around to reviewing the whole problem, but as it happens, it is very much in a chancellor’s interests to have fuzzy rules for residence because then there is so more scope for catching the unwary and hence netting more revenue.
Bizarrely, following the Shepherd case, HMRC did not amend IR20, preferring to say that it had an "enabling function," but clearly, it targeted its efforts carefully.
Dr. Brice recently had the opportunity to extend her approach to the residence problem in another fascinating residence/domicile hearing: Robert Gaines-Cooper v HMRC SPC 568. This is a case that will worry a great many international workers and may have ramifications for large sections of the "ex-pat" community.
To continue, please click here to view the original article published on AccountingWEB.
posted by Issues of Domicile | 11:52 AM
1 Comments:
From Robert Gaines-Cooper
Perhaps I might add some further information to Nichola Ross Martin's excellent article.
I was helped by three leading and specialist law firms on this matter but they could not advise me clearly because the law is now confused. It is an unhappy situation for all taxpayers when they do not know where they stand.
Flying through London and staying the night was my only practicable option - this will be familiar to many international travellers on flights which are less frequent than daily.
My wife did not choose to move to the UK - she was effectively a refugee following the coup in her home country.
Putting my son's name down for Eton was a matter of financial planning rather than an indication of ties with the UK. Public schools go to considerable effort and expense to attract non-UK parents.
On the question of the day count, it was the Revenue which changed the rules. Over this considerable period my records were pretty impeccable and I would blame errors on BA!
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