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Current trends in fraud: Crypto scams
Katie Allard
An investment banker working on a deal in Belgium failed to convince the Court that he was non-resident for tax purposes in the First Tier Tax Tribunal case of Paul Daniel (TC03312).
The Tribunal described this as a “hard fought” residence case and no wonder – during the tax year in question, Mr Daniel had realised a capital gain of £20 million and was also liable for income tax of £5 million.
The main issue was whether Mr Daniel had left the UK to work full-time in Belgium on a deal for Sainsbury’s.
As more than six years had passed, HMRC also needed to demonstrate that he had been ‘negligent’ in claiming non-residence, otherwise they were not entitled to make a discovery assessment.
The very long judgment includes virtually a day-by-day breakdown of where Mr Daniels was and what he had been doing during the tax year in question. The Tribunal concluded that he had not been working full-time in Belgium for the following reasons:
The Tribunal also decided that Mr Daniel had been negligent in simply stating that he was non-resident on the basis of full-time work abroad without giving any further thought to the matter. They said he must have known that he was not engaged in full-time work in a ‘conventional’ sense.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
Katie Allard
Jemma Garside
Fred Allen
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