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Old 22.01.2015, 11:54
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London Mayor pays IRS Tax Demand

British media are reporting that Boris Johnson, the mayor of London, has paid the U.S. IRS the capital gains tax claimed on his house sale in May 2009. Johnson is British but was born in New York where he spent the first five years of his life.

The Financial Times wrote that "Capital gains tax on the sale of a primary residence is not applied by UK tax authorities, but is levied in the US."

"Mr Johnson’s predicament has brought wry smiles at the US embassy in London; the London mayor is pursuing the embassy for £8m in unpaid congestion charges levied on the capital’s motorists."

Guardian article (free):
http://www.theguardian.com/politics/...-us-tax-demand
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Old 15.02.2015, 10:57
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Re: London Mayor pays IRS Tax Demand

Boris Johnson is to dump his U.S. citizenship, saying: "It's an accident of birth that has left me with this thing. I've got to find a way of sorting it out."

http://www.dailymail.co.uk/wires/pa/article-2953392/Security-tops-mayoral-minds-meeting.html

After a successful promotion of his new book, he should be able to afford the $2,350 U.S. citizenship renunciation fee. I just wonder how long he will have to wait for an appointment.
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Old 15.02.2015, 11:03
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Re: London Mayor pays IRS Tax Demand

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"Mr Johnson’s predicament has brought wry smiles at the US embassy in London; the London mayor is pursuing the embassy for £8m in unpaid congestion charges levied on the capital’s motorists."
I wonder whether the U.S. Embassy in Bern, Consulate and Mission in Geneva and Consular Agency in Zurich pay the Billag television and radio fees, or do they refuse claiming it is a tax.

Someone should ask U.S. Ambassador Suzi LeVine about this.

Edit:
To answer my own question, recognized embassies and embassy personnel are freed from the Billag television and radio fees. See paragraphs 1.4.4 and 1.4.5 in this link:

https://www.billag.ch/file/download/..._12_01_D_2.pdf

Last edited by Mullhollander; 15.02.2015 at 11:38.
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Old 15.02.2015, 11:47
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Re: London Mayor pays IRS Tax Demand

The main thing is after renunciation he won't be eligible for the US presidency, http://www.bbc.com/news/uk-31475945

and we should tell Boris Johnson about the English Forum and the FREE advice here, http://www.englishforum.ch/finance-b...xperience.html
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Old 15.02.2015, 13:06
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Re: London Mayor pays IRS Tax Demand

Dont the UK and the US have double taxation treaties which would not require him to pay in the US ?
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Old 15.02.2015, 13:34
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Re: London Mayor pays IRS Tax Demand

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Dont the UK and the US have double taxation treaties which would not require him to pay in the US ?
Yes. However, he did not have to pay the tax in the UK so there was no double taxation.
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Old 15.02.2015, 15:53
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Re: London Mayor pays IRS Tax Demand

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I wonder whether the U.S. Embassy in Bern, Consulate and Mission in Geneva and Consular Agency in Zurich pay the Billag television and radio fees, or do they refuse claiming it is a tax.

Someone should ask U.S. Ambassador Suzi LeVine about this.

Edit:
To answer my own question, recognized embassies and embassy personnel are freed from the Billag television and radio fees. See paragraphs 1.4.4 and 1.4.5 in this link:

https://www.billag.ch/file/download/..._12_01_D_2.pdf
If usage were a criterion for paying the Billag tv and radio fee, Ambassador Suzi would be excused. Although educated at an Ivy League university, recall that she doesn't speak any of the Swiss languages that SRF broadcasts in.

However, non-use cannot be used as a reason for not paying the Billag fee - every household in Switzerland must pay whether or not there's a tv or radio in the house. For some reason, the Swiss government decided to exempt embassies and their personnel from paying this fee. So, Amb. Suzi and the US Embassy do not have to pay the annual Billag tv and radio fee of CHF 462.
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Old 15.02.2015, 17:38
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Re: London Mayor pays IRS Tax Demand

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Dont the UK and the US have double taxation treaties which would not require him to pay in the US ?
They do, but dear Boris earns well over the $92,000 income exclusion limit so still has to file and pay US tax on top of his UK ones. We'll see if he follows through this time around on his statement that he's going to give up his citizenship. If he'd done it back in 2006 when he first said so, he would have avoided the subsequent bill for the capital gains on the sale of his house. And of course, the recently hiked $2,350 fee for renouncing. Still, at least he should avoid the covered expat status and all that entails.
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Old 15.02.2015, 19:08
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Re: London Mayor pays IRS Tax Demand

He has supposedly renounced his citizenship before, via a piece in the Spectator (when he was editor, I think), after an incident where he was trying to travel to Mexico with his family via a US airport, and was unable to pass as they insisted he must use his US passport. He also supposedly tried to renounce it on the spot at the airport.

Here's the article: http://www.boris-johnson.com/2006/08...ican-passport/

As of now, there are no comments on that article dating from after 2006.

What a prima donna. Stop flouncing around and just renounce it if you want to. Accompanied by as little wittering-on as possible, please.

Last edited by armed_neutrality; 15.02.2015 at 19:18. Reason: add link and a bit more piss taking
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Old 15.02.2015, 19:45
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Re: London Mayor pays IRS Tax Demand

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He has supposedly renounced his citizenship before, via a piece in the Spectator (when he was editor, I think), after an incident where he was trying to travel to Mexico with his family via a US airport, and was unable to pass as they insisted he must use his US passport. He also supposedly tried to renounce it on the spot at the airport.

Here's the article: http://www.boris-johnson.com/2006/08...ican-passport/

As of now, there are no comments on that article dating from after 2006.

What a prima donna. Stop flouncing around and just renounce it if you want to. Accompanied by as little wittering-on as possible, please.
He said he was going to renounce back then, but never followed through on it.
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Old 15.02.2015, 21:12
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Re: London Mayor pays IRS Tax Demand

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They do, but dear Boris earns well over the $92,000 income exclusion limit so still has to file and pay US tax on top of his UK ones.
That's unlikely to be relevant, as UK tax rates are higher than US - thus zero tax due, "only" a filing obligation. The reason this got him is because that particular income type is tax free in the UK, but taxed in the US.
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Old 15.02.2015, 21:50
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Re: London Mayor pays IRS Tax Demand

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He said he was going to renounce back then, but never followed through on it.
Well, the article in the Spectator was supposed to be the renunciation itself:

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I make this formal, public, and, I hope, legally valid renunciation
Of course, it wasn't "formal", the form for a formal renunciation being well defined, and not catching that article in its scope. So basically it was a gimmick. An entertaining one, but I must admit I've assumed in the mean time that he really wasn't a US citizen any more.
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Old 16.02.2015, 10:35
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Re: London Mayor pays IRS Tax Demand

I'm actually happy about the whole Boris Johnson situation -- it's a great way to draw attention to the crazy laws about expat taxes. The biggest problem with being an expat is that our voices are lost in domestic politics. At least Johnson is drawing wider awareness to the problem.
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Old 16.02.2015, 11:16
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Re: London Mayor pays IRS Tax Demand

Poor old IRS. The sole source of funding America's war machine and countless bureaus and agencies that don't turn in a profit.

It's about time that politicians in DC realize this madness can't continue and they should start an empire and strip their colonies of all their natural assets.

Wait, wouldn't that be the oil business?
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Old 16.02.2015, 12:09
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Re: London Mayor pays IRS Tax Demand

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I'm actually happy about the whole Boris Johnson situation -- it's a great way to draw attention to the crazy laws about expat taxes. The biggest problem with being an expat is that our voices are lost in domestic politics. At least Johnson is drawing wider awareness to the problem.
I would agree except most Americans think the Queen is the head of State and Blair is still her left-hand man. Boris Johnson's name is basically unknown and may only inspire thoughts of British comedians.
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Old 16.02.2015, 12:46
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Re: London Mayor pays IRS Tax Demand

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I would agree except most Americans think the Queen is the head of State ....
She *is* head of state of the UK.
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Old 16.02.2015, 13:30
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Re: London Mayor pays IRS Tax Demand

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She *is* head of state of the UK.
Also for Australia, NZ, Canada and a whole load of other realms:

http://en.wikipedia.org/wiki/States_...y_Elizabeth_II
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Old 16.02.2015, 13:36
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Re: London Mayor pays IRS Tax Demand

Boris who? I don't mind paying US taxes, but what is unfair is that corporate income outside the US is not tax until repatriated, if ever. The same rule should apply both ways. There is a lot more revenue from corporate taxes than individuals.
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Old 16.02.2015, 17:01
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Re: London Mayor pays IRS Tax Demand

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Boris who?
Boris was a "B-Movie" actor in the US before becoming a politician. He changed his name from Badenov to Johnson and moved to London to further his political ambitions:

https://www.youtube.com/watch?v=AMvcyTKhqls
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