View Single Post
Old 11.03.2007, 19:09
Manolo Manolo is offline
Junior Member
Join Date: Feb 2007
Location: Miami, Florida
Posts: 45
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
Manolo has slipped a little
Re: Zurich London Commute [double taxation question]

View Post
That would depend on the residency requirements in Switzerland. If you applied the above to the UK, you would be resident after a time (more than 90 days per year averaged over a four-year period). Other tests may applied such as having a significant centre of interest in the country. It would be clear that he would be living in Switzerland, whether he registered or not (which would also be illegal if he didn't). In any case, it would be to someone's advantage to pay their taxes in Switzerland rather than in the UK if at all possible.

I agree with the other posters - anyone on this thread who has or finds useful information on the topic should post it here - others who find this thread later will thank them.
Sorry, but this is wrong.

Swiss (and EU) Tax authorities apply tests as: center of interest, home ownership, nationality and so on, ONLY if you are not registered as a resident AND don't pay taxes anywhere else. So, show them your UK proof of residence, UK tax return and you're audit-proof in Switzerland.

As for the registration. It is not illegal not to register "as permanent resident", since three consecutive days is less than 90 days and three days times 52 weeks is less than six months in a year, so technically you're not breaking the commuter or temporary visitor rules.

Paying tax to the UK is the easier, more reasonable and logical option. But of course, not the only one.

If you want to take advantage of Switzerland's lower taxes, your employer has to declare you as non-resident, in addition to your own declaration. Then register in Switzerland. But your time spent in the UK is a problem, technically you're still "ordinarily resident" in the UK, even if "resident" in Switzerland. There is no legal way out of it.

You could argue you're non-domiciled but that's hard to prove it while being "ordinarily resident".

There are gray, fishy solutions, technically illegal (like your company telling IR you're telecommuting, while you're actually working out of their offices, and not reporting your trips to London, or, receiving your compensation through an offshore subsidiary, thus no UK income) but IR doesn't like any of them and you will be ***** if they decide to double check your returns and time spent in the UK, and believe me, they can easily do the latter.

Of course I'm not a lawyer nor a tax expert, just relaying acquantainces experiences.

I agree with Mark you should visit a tax expert, he or she might not be cheap, but peace of mind is priceless.

Last edited by Manolo; 11.03.2007 at 19:54.
Reply With Quote