Save as you flee
Sir: The amusing conclusion to Edward Whitley's guide to tax havens (`No place like home', 21 March) is sadly misleading, and thereby perhaps doubly amusing. Any company incorporated in the United King- dom after 14 March 1988 is resident for corporation tax purposes here and is there- fore chargeable for corporation tax on all its profits wherever arising. A company incorporated outside the United Kingdom but with its place of central management and control here is also resident here, with the same consequences.
The truly bright tax exile should of course take proper professional advice but, before considering returning from his bolthole to England to run a non-resident company registered here (whatever that is), he (or she) may do well to consult, if not the rele- vant tax legislation, then at least: a) The Inland Revenue Statement of Practice on Company Residence (1/90), issued on 9 January 1990, which will give him food for thought about how the Rev- enue approaches the 'central management and control' test where it appears that a major objective underlying the existence of certain factors is the obtaining of tax bene- fits from residence or non-residence; and
b) the Revenue pamphlet IR20 on 'Resi- dents and Non-residents — Liability to Tax In the United Kingdom', issued in 1986 but still containing many useful pointers.
It occurs to me that Mr Whitley's would- be tax exile could quite quickly find himself resident in the United Kingdom, and there-
fore subject to full UK taxation, running a company chargeable to corporation tax on
Its worldwide profits. Is Mr Whitley an agent (provocateur) for the Inland Rev- enue? Y think we should be told.
3 Rowfant Mansions, London SW17
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