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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: 3
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
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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: 3035
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.

Tet1302
Posts: 3
Joined: Sun Jan 06, 2019 4:23 am

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

Postby Tet1302 » Tue Feb 19, 2019 7:28 pm

The jurisdiction is Singapore. There is a UK/SG DTA however I cannot see any clause that makes reference to any mutual procedures for tax collections. Further, I cannot determine if the DTA follows the OECD model....it seems they are not a signatory to OECD ?

I would be most appreciative of further thoughts on this matter: can Singapore recover unpaid income taxes in the UK after a period of more than 6 years has elapsed?

Thank you all.

AGoodman
Posts: 743
Joined: Fri May 16, 2014 3:47 pm

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

Postby AGoodman » Tue Feb 26, 2019 12:56 pm

In the absence of an agreement Singapore taxes are probably unenforceable in the UK irrespective of timing (Gmt of India v Taylor).

maths
Posts: 7517
Joined: Wed Aug 06, 2008 3:25 pm

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

Postby maths » Tue Feb 26, 2019 7:21 pm

can Singapore recover unpaid income taxes in the UK after a period of more than 6 years has elapsed?
No.

There is no provision contained in the UK/Singapore DTA wrt the collection of taxes; were such a provision to be included it would be the time limits of the UK which would be relevant (assuming the OECD Model was followed; Article 27).

Singapore although not a member of the OECD may sign up to the Joint Convention on Administrative Assistance in Tax Matters but as far as I am aware has not done so.

Recent cases in the UK: RCC v Ben Nevis [2012]; [2013] C/A.

Tet1302
Posts: 3
Joined: Sun Jan 06, 2019 4:23 am

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

Postby Tet1302 » Fri Mar 08, 2019 4:25 pm

Sincere thanks to each contributor on this question. Your insight has been most helpful. Thank you very much.


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