no peace for the wicked

[martin]

those from the uk might want to check this article

http://money.independent.co.uk/property ... 168130.ece

[Gambrinus]

For years our accountants have told us, that the double-taxation agreement which PT and UK signed means that funds taxed in one country cannot be taxed again by the other country. I can understand that the UK tax man wants to know what is going on with Brits abroad, but I do not see how money that has already been taxed in Portugal (rental income) can be taxed again in the UK?

Maybe my coffee is taking a bit longer to kick in this morning....but I just don't see the financial benefit of this maneuvre.

[tomgibson]

Having just read this article any one who is conducting his affairs properly has no cause for concern. Woe betide the others!

[Gazza]

G - The Revenue will want to know so as to make sure that he can collect the difference between the overseas tax deducted and the local UK rates.This is especially relevant if the person concerned is a higher tax payer in the UK and will therefore have to stump up the 15 % difference ( UK higher rate 40% - the standard portuguese 25%).

G

[DaveK]

The ICAEW reported that HMRC had won this case before a Special Commissioner in early May this year and quoted the same estimated figure of tax lost amounting to £1.5bn (plus presumably substantial penalties and interest). Mind blowing if this just relates to non compliance by Barclays UK resident taxpayer customers in relation to income only. What about other profits arising outside the UK, eg capital gains?

From a money laundering and Proceeds of Crime Act angle surely HMRC will look behind the undeclared income in material cases at the underlying assets giving rise to that income and asking where the original capital came from to fund such assets.

Apparently HMRC have, or are going to, set up a contact point on their website specifically for taxpayers or their representatives to make contact with a view to making a disclosure in respect of such matters. Such disclosures go a long way toward mitigating penalties.