“Unfortunately, tax ‘leniency’ in a low‑ or nil‑tax jurisdiction does not change how other states determine taxing rights,” said Fernando Del Canto, a Spanish lawyer and barrister based in London.
“Countries are sovereign and they don’t want their tax base to be eroded; they don’t want their tax [rights] to fly to the emirates.” He suspected the Spanish and UK tax authorities would challenge people who had fled the UAE if they stayed in their countries long enough to become tax residents.
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.comT&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found on the Help FAQ on gift articles.
https://www.ft.com/content/697d389e-a816-4763-8006-28a3d4bb252b?syn-25a6b1a6=1
Charlie Sosna, head of private wealth and tax at law firm Mishcon de Reya, said that while the UAE’s private assurances offered “some comfort on paper”, it did not “eliminate the underlying tax risk”. Returning Britons could face unexpected liabilities for both income tax and capital gains tax, if they become UK tax resident.
The full article is in the FT. Worth the read. Published by Emma Agyemang on the Financial Times.