UK, Ireland open broadside on Malta-based 'tax exiles’
The United Kingdom and Ireland have stepped up their pace to target their nationals who have domiciled their financial interests in Malta and avoid paying higher tax rates in their country.
It is believed that a recent test case in the UK helped pave the way, as the Appeals Court rejected claims by international businessman Robert Gaines-Cooper, that the taxman laid a 'devious trap' for him by refusing him non-resident status and hitting him with a €36 million retrospective penalty.
Tax exiles can spend a maximum of 183 days a year in the State or 280 days in a two-year period. A day does not count for tax purposes if they leave the country before midnight.
However, it has emerged British and Irish Revenue Departments are using airline tickets and domestic bills to track their movements and challenge their exile status.
The people of interest are expected to have plenty of money to fund a battle that could land before their respective Supreme Courts.
Announcinmg Irleland's Budget last December Finance Minister Michael Noonan told parliament in Dublin that: "the Programme for Government is committed to ensuring that people with wealth
pay their fair share. I intend to keep the contentious issue of the tax treatment of tax exiles under constant review.
Malta features high on the so called 'favoured destinations' for British and Irish tax exiles, followed by Geneva, Monaco, Bermuda, Portugal, Gibraltar, the Cayman Islands and the Bahamas.