Embassies paying tax despite avoiding parking fines

Some foreign embassies are operating PAYE income tax provisions for locally
engaged staff despite their technical extra-territoriality, economic secretary
Ed Balls has revealed in the Commons.

He said double taxation agreements may exempt certain other staff who are not
UK nationals, and declined to name the missions that cooperate with the UK tax
authorities ‘for reasons of taxpayer confidentiality’.

The disclosure came as a surprise in the light of on-going disputes with some
foreign embassies which refuse to allow staff to pay parking fines for reasons
of diplomatic immunity.

London Boroughs are owed many millions of pounds in unpaid and overdue fines.

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