TaxPersonal Tax‘Non-domiciled tax rules are racist’

'Non-domiciled tax rules are racist'

Tax Research LLP issues a report labelling non-domiciled tax rules as racist and discriminatory

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
‘National
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.

Further reading:

Labour lenders had tax affairs probed

Non-doms £1bn dodge

Lord Levy’s accountancy training ‘key to enquiry’

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