Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by Adster

Even offshore accounts SHOULD be declared to the IRS but you are taxed on the interest earned in your account and not the total amount of your account. But yes, once you bring it into the UK, you would be charged at 40% if you told them/they found out.

But if you bought a property abroad and kept all monies outside of the UK you wouldn't be charged the full 40%.

No doubt we'll have to pay some tax, but minimising it is sensible and won't leave you feeling 'raped' by good old Gordy Brown.

Reckon half anf half is the way to go, cash in a little at a time, get good advice from an accountant/tax expert, pay enough taxes legally and sleep well at night. The famous folk like Sean Connery and George Michael have the right idea by only staying in the UK no more than 83 days a year and avoid paying huge taxes.

My husband is a UK chartered accountant and he knows a bit about this - Adster, in the main , is right - the 40% tax is not necessarily the case though - it very much depends on just how much you bring back to the UK (the rate of tax would be dependent on your total income for the year with 40% tax being the highest rate of tax). You can use up the allowances of yourself and also your spouse too (depending on your personal income levels), you can also gift money to friends and family up to about 3,000 GBP which doesn't attract tax (but is a PET, potentially exempt transfer under inheritance tax).

Adster is correct, you are taxed on the monies you send back to the UK - you SHOULD declare your offshore accounts to the Revenue but you only need to declare the INTEREST in those accounts (and even then you don't pay tax on it unless it is REMITTED, or sent, to the UK).

Trusts are another way in which you can protect assets and at the same time gain an income (of sorts) and also minimising your tax liability.

Pensions are another way of minimising your tax liability.

The 83 days a year outside the UK suggestion Adster is slightly incorrect. It is actually 183 days per year or an average of 91 days per year in any 4 year period. If you are in the UK for 183 days or more you will always be resident and subject to taxes. What the "stars" do is they ensure they aren't in the UK for 183 days in any year and that they, on a 4 year average aren't in the UK for more than 91 days in any given year (so your numbers work Adster but aren't quite right).

We no longer live in the UK so he told me to add this caveat as he hasn't practiced or followed the tax legislation for quite some time.

Hope this helps at least a little to some of you.

20/07/2006
Source: Trade Arabia


Iraq's cabinet passed the country's first postwar law to regulate foreign investment, hoping it will attract badly needed cash to revive the country's shattered economy.

But the legislation, which also requires parliamentary approval, does not cover investment in upstream oil production and exploration.

The law gives Iraqi and foreign investors equal shares in investment projects, except in land ownership.

It allows investors to move money in and out of Iraq with few obstacles, according to a draft obtained by Reuters, and also requires that at least 50 per cent of the employees in a company should be Iraqis.

Iraq, which sits on the world's third largest oil reserves and is a major producer, had expected billions of dollars in foreign cash after an invasion toppled Saddam Hussein in 2003.

But instead of taking part in rebuilding projects, foreign companies have stayed away because of the relentless bombings, shootings and kidnappings.

The vast majority of foreign money has been poured into security for western companies, not reconstruction projects.


All we need now is a parliamentary approval!!

Malki: peace initiative to be launched Saturday

Baghdad, July 19, (VOI) – Prime Minister Nouri al-Malki said on Wednesday a national reconciliation initiative declared last month would be launched on Saturday as planned.

“The higher commission for national reconciliation will meet on Saturday to launch the initiative practically…according to the plan we announced before,” Malki told a news conference after a cabinet meeting.

Malki and other government officials have said over the past few weeks that former opponents of the political process have shown readiness to join the peace plan according the to framework outlined by Malki late last month.

http://www.aswataliraq.info/modules....rder=0&thold=0

Mike OSW, Adster, Cigarman, Neno, PipsH, Treater, I hate to persit with the same question, but I never did get an answer............ how soild is this September deadline for the ISX? Is it written in stone, will they face heavy penalties or something if they don't meet the time requirements, or will they simply go back to the drawing board and set a new deadline?


ps. Does anyone know if there's a way to mark a post for easy refference at a later time?

This is supposed to be one of the Top Tax Planning Services Firms in the World. Probably pricey but worth it....


http://www.henleyglobal.com/index.php

Originally Posted by melg

My husband is a UK chartered accountant and he knows a bit about this - Adster, in the main , is right - the 40% tax is not necessarily the case though - it very much depends on just how much you bring back to the UK (the rate of tax would be dependent on your total income for the year with 40% tax being the highest rate of tax). You can use up the allowances of yourself and also your spouse too (depending on your personal income levels), you can also gift money to friends and family up to about 3,000 GBP which doesn't attract tax (but is a PET, potentially exempt transfer under inheritance tax).

Adster is correct, you are taxed on the monies you send back to the UK - you SHOULD declare your offshore accounts to the Revenue but you only need to declare the INTEREST in those accounts (and even then you don't pay tax on it unless it is REMITTED, or sent, to the UK).

Trusts are another way in which you can protect assets and at the same time gain an income (of sorts) and also minimising your tax liability.

Pensions are another way of minimising your tax liability.

The 83 days a year outside the UK suggestion Adster is slightly incorrect. It is actually 183 days per year or an average of 91 days per year in any 4 year period. If you are in the UK for 183 days or more you will always be resident and subject to taxes. What the "stars" do is they ensure they aren't in the UK for 183 days in any year and that they, on a 4 year average aren't in the UK for more than 91 days in any given year (so your numbers work Adster but aren't quite right).

We no longer live in the UK so he told me to add this caveat as he hasn't practiced or followed the tax legislation for quite some time.

Hope this helps at least a little to some of you.

Thank you for this melg, very interesting. I'm liking the stick the money away offshore and ONLY pay tax on the interest route seeing as you will be earning interest in the offshore account and hence can offset some of it against the UK tax you'd pay.

Quite happy having some of it here and paying the 40%, I feel we get screwed over here badly on tax and would go the same route as you one day, ie abroad. :0)

Originally Posted by Adster

Thank you for this melg, very interesting. I'm liking the stick the money away offshore and ONLY pay tax on the interest route seeing as you will be earning interest in the offshore account and hence can offset some of it against the UK tax you'd pay.

Quite happy having some of it here and paying the 40%, I feel we get screwed over here badly on tax and would go the same route as you one day, ie abroad. :0)

Always glad to help Adster, is the least I can do for all the wonderful info you (and the others) provide.

Another thing you COULD do is have the money offshore, incorporate a property investment company, wire funds to the company in the UK (this could be your personal purchase of share capital which I don't think is taxable) and buy property (you can get loans to do so and the loan interest is set against the income) - you have the benefit of capital appreciation of the properties and the offset of interest against the income.

It is more complicated than that but I believe it also works - AND you have your money working for you.

You could also take a trip offshore, take a load of money out, bring it back to the UK, exchange it and the IR will be none the wiser (this isn't legal but chances of being caught would be minimal) - don't tell hubby I said this though

Re paying the 40%..... why do you think we LEFT the UK ?

Originally Posted by melg

Always glad to help Adster, is the least I can do for all the wonderful info you (and the others) provide.

Another thing you COULD do is have the money offshore, incorporate a property investment company, wire funds to the company in the UK (this could be your personal purchase of share capital which I don't think is taxable) and buy property (you can get loans to do so and the loan interest is set against the income) - you have the benefit of capital appreciation of the properties and the offset of interest against the income.

It is more complicated than that but I believe it also works - AND you have your money working for you.

You could also take a trip offshore, take a load of money out, bring it back to the UK, exchange it and the IR will be none the wiser (this isn't legal but chances of being caught would be minimal) - don't tell hubby I said this though

Re paying the 40%..... why do you think we LEFT the UK ?

Lol, thought that was the reason! good on you, France? Spain?

As for exchanging it, do you or hubby know the amount we could exchange at say a bank before they are obligated to inform the IRS? Something like 5k? is it? sterling.

Your secret is safe with us, lol.

Originally Posted by zugdor

Mike OSW, Adster, Cigarman, Neno, PipsH, Treater, I hate to persit with the same question, but I never did get an answer............ how soild is this September deadline for the ISX? Is it written in stone, will they face heavy penalties or something if they don't meet the time requirements, or will they simply go back to the drawing board and set a new deadline?


ps. Does anyone know if there's a way to mark a post for easy refference at a later time?

Not definite, just the word on the street. No penalties if not opened by then. I did read elsewhere that the ISX has contract to trade stock with countries around the 27th of this month. So in theory a r/v SHOULD be done before this. Not sure how true it is though as it's not official......

Raddy,

Could you please take some of the last posts and make a sticky for UK tax purposes for the UK members here.

Thanks.