A Political Thread pt. 2

[ncurd]

If I work for a UK company, but live in Germany for example, who should receive my taxes?

Conversely I spend 50% of my day conversing with people in the Czech Republic (who do work for me) and people in Canada (who I do work for). Where are we actually conducting our business?

I don't think its complicated for income tax you are domiciled in the country you spend the majority of your time in. Dividends are clearly income.

 

[pagliaccio_euforico]

I'll add that with the advent of remote working tax laws need an overhaul anyway. If I work for a UK company, but live in Germany for example, who should receive my taxes? The country where the company is based or the country whose public services I'm using? How about if you own a company in the UK and live abroad (genuinely, not for tax purposes) what then?

yeah transnationalism can make taxes pretty philosophical in nature. I nicked the book "Economies without borders" (or something like that) from my Econ building during my undergrad days and have been meaning to get around to it for about 6 years now.

Generally I feel that whatever country provides the public infrastructure that generates the revenue should get the tax. So in my normative economics view.

1. UK receives your income tax while German company pays German business taxes.
2. You pay income tax in the country you live in for the money that you pay yourself for work you do for the company. Really depends on how the company is setup for how to deal with other money you'd make but I'd generally feel your passive money made from your business would go to the UK.

 

[Reiser99]

Conversely I spend 50% of my day conversing with people in the Czech Republic (who do work for me) and people in Canada (who I do work for). Where are we actually conducting our business?

I don't think its complicated for income tax you are domiciled in the country you spend the majority of your time in. Dividends are clearly income.

That's the issue, it should be simple, but it's not and it's mainly the wealthy creating loopholes for themselves.

Actually it reminds of this scene.

 

[Ragey Erasmus]

From speaking with people I know who are on the right, I'm amazed at how frequently things revolving around LGBT come sup as something to poke fun at and used as a primary example of "wokeness". For more than one person it seems to genuinely form a large part of their political concerns. There is a war, Brexit is a mess, the NHS is under strain, we have the worst cost of living crisis in decades, the government have repeatedly been shown to be corrupt but as long as they go after LGBT issues, that's all that matters.

I also find it quite funny that the same people who whine about this are ones who accuse others of constantly waging culture wars yet it's them who go on and on and on about it non stop and makes up a huge chunk of what they are currently concerned about.

 

[pagliaccio_euforico]

In Pennsylvania the Republican primaries for Senate are going on right now and transgender kids are mentioned in every commercial, it's unbearable.

 

[Reiser99]

On a slightly more positive note, at least 3 Republican senators aren't sticking to the stupid tribalism and blind, partisan politics that has become the norm in many democracies.

Ketanji Brown Jackson: US Senate votes to confirm judge to top court

The historic vote means Judge Jackson will be the first black female justice to serve on the court.

www.bbc.co.uk

 

[pagliaccio_euforico]

if we only we can get Clarence Thomas kicked off for his wife supporting an uprising

 

[Bada-Bing!]

but the work you do is done in the UK. The only connection her money has to the UK is that she lives there. She doesn't do any work for the company she is just a large shareholder. For instance my brokerage firm tells me what taxes I have paid in foreign countries based on the money I have made from my shares in foreign corporations. It's no different than her other than she just makes a lot more money.

But in the US you are taxed on your worldwide income and gains because you are a US national. You try telling the IRS you don't owe US taxes on your foreign investment income and see how far you get. They'd come down on you like a tonne of bricks. But You can then get to claim that overseas tax paid as a tax credit against your US taxes.

A non US national working in the US would only pay US taxes on their US earnings and not their overseas income and gains. But if they were to become US tax resident they would have to pay US tax on their worldwide income and gains. There's no remittance basis of taxation on their non US income.

In the UK we are taxed on our worldwide income and gains in the tax year on an arising basis if we are UK resident in a tax year (broadly you are present here for at least 183 days/6months in the tax year) subject to the Statutory Residence test - regardless of nationality. if we have overseas income we also pay UK tax on it and claim any overseas tax paid as a tax credit against our UK liability. If you're a British National but non-UK resident in a tax year you don't owe UK taxes on your non UK income earned, but still are taxed on UK source income such as property income.

The very quirky rule with Non UK domiciles, who are UK resident only applies if they can afford to claim it. It's a purely commercial decision to stop having their overseas income being subject to UK tax; although she has to pay £30k annually for the privilege, that pales in to the amount that would be due on a £11.6m dividend if she didn't claim being non dom and the remittance basis (over £4.5m).

Just because she's earning more doesn't mean she shouldn't pay UK tax on it from a moral point of view. That's why it stinks of hypocrisy when her husband is raising taxes on UK resident nationals who don't have access to what she can because its to her financial advantage and she can afford it.

 

[pagliaccio_euforico]

for time

I think that the tax credit system makes a lot of sense to me, idk if that's just me drinking the American kool-aid or whatever but it makes a lot of sense for me to not be tax twice on my earnings. I don't think I've ever had the choice to report it as it's part of my forms I get from my broker.

So am I correct in what I'm reading that Americans and Brits have a similar system of a tax credit that can be claimed for foreign taxes?

The 30k fee to pay a cheaper tax is just insane and I am kind of in disbelief about it.

 

[Bada-Bing!]

I think that the tax credit system makes a lot of sense to me, idk if that's just me drinking the American kool-aid or whatever but it makes a lot of sense for me to not be tax twice on my earnings. I don't think I've ever had the choice to report it as it's part of my forms I get from my broker.

So am I correct in what I'm reading that Americans and Brits have a similar system of a tax credit that can be claimed for foreign taxes?

The 30k fee to pay a cheaper tax is just insane and I am kind of in disbelief about it.

Yes, fundamentally both UK and US residents are taxed where they are resident, apart from in US citizens case you are taxed on your worldwide income and gains regardless of where you're resident - the price of your citizenship. And yes In most countries around the world have access to this as there's double tax treaties with each other to give relief on taxes paid on the same income and gains if someone is resident in two countries. It's restricted though to which country's tax takes priority.

Otherwise Unilateral relief should be available as it is here.

Americans who work over here in the UK can also take advantage of the remittance basis. If they pay £30k or £60k they can use that as a tax credit when filing their US tax return.

 

[Reiser99]

I think that the tax credit system makes a lot of sense to me, idk if that's just me drinking the American kool-aid or whatever but it makes a lot of sense for me to not be tax twice on my earnings. I don't think I've ever had the choice to report it as it's part of my forms I get from my broker.

So am I correct in what I'm reading that Americans and Brits have a similar system of a tax credit that can be claimed for foreign taxes?

The 30k fee to pay a cheaper tax is just insane and I am kind of in disbelief about it.

I find it insane that you still have to do your own taxes and I'm in disbelief about it.

On a serious note understanding tax systems is honestly something I have zero interest in. I probably should care more, but as I've said I feel like they make it so complicated just to either get more money from the plebs or create more loopholes for the rich.

Hell America's method of doing your own tax returns is mainly so the tax software companies that lobby can make money and the IRS can charge fines for people who do them incorrectly even though it's usually just an innocent mistake. It's a whole business on something that shouldn't be needed at all.

 

[ncurd]

The Sunak thing potentially gets worse

 

[Bada-Bing!]

I find it insane that you still have to do your own taxes and I'm in disbelief about it.

We have a self assessment system of doing our own tax returns as well. Just most peeps here don't do one if they are just on PAYE.

 

[Bada-Bing!]

Just crazy denial from Putin's spokesman.

 

[General Melchett]

I'd love to know who from within the Tory party is feeding the press all the Sunak revelations. Wouldn't surprise me if it's Boris' cronies like Rees Mogg as revenge for the photos of the garden party taken from the top floor of No.11. Clearly there's an attempt to do damage before a potential leadership contest after the May elections.

 

[ncurd]

I'd love to know who within the Tory party is feeding the press with all the Sunak revelations. Wouldn't surprise me if it's Boris' cronies as revenge for the photos of the garden party taken from No.11. Clearly there's an attempt to do damage before a potential leadership contest after the May elections.

Honestly don't think its anything so conspiratorial I think the papers were lining up the stories in the wake of the May elections and Johnson however the Spring Statement lead balloon combined in the wake of inflation figures as well as fuel costs meant the firing gun went off. Honestly it was the filling not his car and not being able to use contactless at the station. That meant it triggered in people minds he was not a man for the people but kept staging he was that allowed the news outlets to go on full attack.

Its quite surprising to some extent to have such a media savvy approach to creating a brand but failing utterly to have put the substance behind it.

 

[Bada-Bing!]

Cummings?

 

[General Melchett]

Cummings?

I think Cummings' beef is with Boris rather than Rishi.

 

[Reiser99]

We have a self assessment system of doing our own tax returns as well. Just most peeps here don't do one if they are just on PAYE.

Yeah, but that's more geared at self-employed or renting out property etc...

Having said that if we're not being hypocritical, shouldn't we be tougher on cash in hand?

 

[General Melchett]

Honestly don't think its anything so conspiratorial I think the papers were lining up the stories in the wake of the May elections and Johnson however the Spring Statement lead balloon combined in the wake of inflation figures as well as fuel costs meant the firing gun went off. Honestly it was the filling not his car and not being able to use contactless at the station. That meant it triggered in people minds he was not a man for the people but kept staging he was that allowed the news outlets to go on full attack.

Its quite surprising to some extent to have such a media savvy approach to creating a brand but failing utterly to have put the substance behind it.

Yeah could well be. A Chancellor who raises taxes during a cost of living crisis is always going to be up against it in the media.