Well, we all know New South Wales was settled as a convict colony but there was one blessing. After 1778, the Imperial Parliament stopped trying to impose taxes on colonies.
Those days may be coming to a close. Recently we had a client being asked to pay back tax to HMRC for 2008. We do not think such a claim is enforceable in Australian Courts.
But be aware that since Australia (foolishly) signed the multilateral OECD Convention on Mutual Assistance in Tax Matters, there is a view, apparently held by the Australian Tax Office, that foreign tax claims from some 60 countries (including the UK) may be registered and pursued in this country via the friendly good offices of the ATO.
If you receive any such demands you should consider what assets you have in the UK to be seized in satisfaction and, if that is not a concern, you may want to get detailed advice on your precise case. The issues can be complex.
Cross border tax claims are going to become more common as national tax offices share data across borders among the global tax fraternity of tax inspectors, who are friendlier to each other than their own peoples.
Makes you even understand why the Americans were so revolting back in 1776!
Dr Terry Dwyer
Dwyer Lawyers
