Re: Non-dom tax plan angers German expats
- From: whitely525@xxxxxxxxxxx
- Date: Fri, 21 Dec 2007 10:31:09 -0800 (PST)
On 21 Dec, 17:20, Palindrome <m...@xxxxxxxxxxx> wrote:
whitely...@xxxxxxxxxxx wrote:
On 21 Dec, 11:29, Palindrome <m...@xxxxxxxxxxx> wrote:
R. Mark Clayton wrote:
"I think that all foreigners living abroad should be taxed" St. John GumbyAnd you were replaced by, what exactly? A Belgian? In which case Belgium
~1971
It would seem that Alistair Darling's thinking is not much further ahead
than this.
Of course a non UK company director is going to volunteer to pay tax and NI
(for benefits they will almost certainly never be able to claim) for the
pleasure of working here. More likely many will simply pack up and leave.
This is certainly what I did in order to avoid [heavy] double taxation in
Belgium (yes there IS a treaty, but the Belgian Ministry of Finance simply
ignores it) leaving well before the 183 days kicked in.
had managed to get an extra job for its own people.
By apparently violating a treaty - basically protectionism
Either the remuneration package will be adjusted*, or Heaven forbid,
companies will have to look to employing locals rather than importing
staff from home.
Many employees don't want to relocate and the cost to the Cos is also
high.
In that case no sane Co would relocate somebody if there was a
suitable local person.
The skills cannot always be sourced locally. So multinational Cos
invest a lot in a small # of people who have to be more mobile. The
other option is to lay people off locally, and recruit and train new
people in the new location. This can take years, and by the time
they are trained you may find these employees are actually at the
wrong location.
I would suggest that those Germans that have been here >7 years aren't
in that category. Seven years would have been ample time to recruit and
train up a local to take their places, should the company be so minded.
Possibly. But that suggests the business knew 7 years ago what its
need would be 7 years ahead. Most multinational Cos restructure
every few years.
Many (most?) will have used centrally-funded resources (eg NHS, schools)
without paying a bean towards them.
In case of long term relocations the employee usually pays local
income tax/NI due to resident status (as well as council tax). This
is why shorter term assignments can be better: it is like a long
business trip where all your rent+bills+car are 'business expenses'.
And you are more likely to be tax-equalised. The real trick is to
keep moving to avoid tax in any jurisdiction..!
AFAIUI the non-dom debate is about UK taxing foreign earnings. E.g.
if a UK person relocates to Germany, then it is like the German govt.
taxing UK rental/savings/dividends. In the reverse situation the UK
would not tax foreign income of German person in the UK if that income
was not re-patriated to the UK. The proposal is to change that.
This should get the company thinking whether they really do need to look
to recruiting someone locally to fill the job - as the 7 year hitch
approaches..
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