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Where Taxpayers and Advisers Meet

Ability of foreign, non-EU, jurisdiction to recover unpaid income taxes after 6 years has elasped

Tet1302
Posts: 1
Joined: Sun Jan 06, 2019 4:23 am

Ability of foreign, non-EU, jurisdiction to recover unpaid income taxes after 6 years has elasped

Postby Tet1302 » Mon Feb 04, 2019 2:01 pm

Could any professional please advise: What course of action can a non-EU foreign jurisdiction take in the UK to recover outstanding income taxes they claim are due after 6+ years has elapsed? Also does a statute of limitation apply in this case? Thank you.

wamstax
Posts: 1852
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
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Re: Ability of foreign, non-EU, jurisdiction to recover unpaid income taxes after 6 years has elasped

Postby wamstax » Mon Feb 04, 2019 6:19 pm

You need to have a look at the respective Double Taxation Agreement and the equivalent of the MARD (please google it) procedures
regards and hope this helps
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bd6759
Posts: 3008
Joined: Sat Feb 01, 2014 3:26 pm

Re: Ability of foreign, non-EU, jurisdiction to recover unpaid income taxes after 6 years has elasped

Postby bd6759 » Tue Feb 05, 2019 10:45 pm

Why say "non EU jurisdiction" when it would be easier, quicker and more useful to mention the country?

If the UK has a DTA with the State, and the DTA follows the OECD model, (check out article 28), the overseas State can transfer the debt to the UK to collect on its behalf. The UK can then collect the tax as if it were tax payable under UK rules. That means the Limitations Act does not apply.

If there is no DTA, or the DTA does not cover the collection of tax, the overseas state will need to raise action in the UK court, and the Limitations Act will apply.


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