A report by Tax
Research LLP has accused HM Revenue & Customs of implementing
rules that are unlawful as they discriminate between domiciled citizens and
non-domiciled people living in the UK.
In the report, entitled
Origin, Equality and the UK’s Domicile Law as
it relates to Taxation’ , Richard Murphy, the head of Tax Research
LLP, said that the non-domiciled rules, exempting non-domiciled people from
paying tax on income earned abroad, were racist and unlawful.
‘In the UK HM Revenue &
Customs supply domicile rulings when requested to do so by
individuals whose national origin is outside the UK which mean that, on average,
they pay 16% less tax than persons of UK national origin on identical sources of
income,’ said Murphy.
He added: ‘HM Revenue & Customs has publicly stated that there is no
policy to justify this differentiation, it being the consequence of piecemeal
legal development over 200 years that has created a situation which is now
contrary to UK law on race discrimination.’
The report estimated that 53 million UK nationals, or 88% population, were
being discriminated against by the non-domiciled tax rules, which enabled
non-domicileds to collect £1bn in benefits each year.
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