Anorak | Mark Steel Has No Idea About Non Doms

Mark Steel Has No Idea About Non Doms

by | 14th, February 2008

IN The Independent: “Mark Steel: A taxing problem: should the rich pay for cheese?”

Says Steel:

New Labour certainly keep their promises. Before they were elected, they promised to reform the loophole that enables the super-rich to avoid paying tax, by claiming “non-domicile tax status”. And now, 11 years later, they’re still promising to do it.

But the non-doms don’t avoid paying tax. Non-doms pay tax on all their UK earnings. They also pay UK tax on earnings they bring into the UK. They are not non-residents. They are non-domiciles. The clue is in the name.

Steel calls it a “ruse”.

He goes on:

Our tax laws have become so soft that last year the International Monetary Fund put us in the same category as Bermuda and the Cayman Islands. Along with Ireland, we’re the only country that allows the wealthy to live here and pay no tax through this system, and apparently we should be proud of this. So we’re bragging, “We’re so soft they come to rob us. Isn’t that wonderful? They don’t rob France or Italy, just us. But we mustn’t upset them or they might go somewhere else and rob them instead.”

But they do pay tax if they earn while in the UK or bring earnings in. And they do not rob when they are resident here and buy houses and spend money on football clubs and players’ salaries – Steel uses the example of billionaire Russian and Chelsea football club owner Roman Abramovich.

Does paying the likes of Ashley Cole £70,000-a-week help or hinder the country? And do note that Cole pays tax on that. Mr Steel can read about high earners and high tax payers here

Posted: 14th, February 2008 | In: Broadsheets, Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink