Gaines-Cooper ruling affects Monaco: British tax authorities win domicile status case that could impact rich businessmen

Robert Gaines-Cooper, a British multi-millionaire who claimed residency in the Seychelles, is reported to be facing tax bills going back to 1993, in a court decision which could impact on the status of UK millionaires in Monaco.More... The case centers on how British tax authorities determine residence and domicile status for the purposes of paying tax. Currently, a British citizen can claim non-residency, and have the right not to pay tax to Britain, provided they do not spend more than 183 days in any single year in the UK or an average of 90 days a year over a period of four years. However, because days of entry and departure have not counted, many wealthy businessmen have been able to fly to the UK early Monday morning and be back late Wednesday night, having done effectively three days work which only represented one day out of the permissible 90. HM Revenue & Customs, which took the case to court, appears to have ignored its own guidelines to pursue Mr. Gaines-Cooper, arguing that despite the fact he was within the 90-day ruling he had very close links to his homeland. His wife reportedly spends most of her time in the UK and their son is at school there. HM Revenue & Customs wanted to count every night spent in the UK – not just the days – and the Special Commissioners, who hear tax disputes before they go to the High Court, upheld that aim. 
Mr. Gaines-Cooper plans to appeal, but the ruling will have sent shivers down the backs of Monaco’s Millionaires - and their wives.

Comments are closed.