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Like which ones and how would they go about taxing a foreign entity? They would tax the individuals when they repatriated income.
by sanswork 10y ago
Like which ones and how would they go about taxing a foreign entity?
They would tax the individuals when they repatriated income.
- vidarh 10y agoThe UK, for one. The HMRC has wide powers to assess tax if unilaterally if they suspect that the company is operating in the UK, and you are unwilling or unable to prove that it isn't. In terms of taxing it, they would try to recover taxes from the entity itself first, but if the entity itself is non-responsive, they would go after its assets and directors and cash flows in or moving through the UK (and for now also the EU). Since the issue here is specifically companies that are foreign entities operating out of the UK, there will be generally be something they can go after - if there isn't, then the company couldn't realistically be considered to be operating out of the UK for tax purposes anyway. It's absolutely possible for UK owners to operate a foreign entity in ways that HMRC will agree does not imply taxes are due in the UK (been there, done that), but the point is that you need to be careful, because a few wrong moves and you may worst case have two jurisdictions both expecting you to pay taxes of the same money.