Conflict of International Law
Taking a step backwards for a moment, conflict of international law can sometimes legally bring about odd results and provide an unexpected beneficial outcome in some quarters.
Others have already commented upon this and potential moral issues.
Whilst I certainly do not seek to moralise perhaps it is inevitable for governments to consider any perceived “loophole” and for it eventually to be “plugged”.
If so then it would appear that steps have been taken in this regard to close further at least part of the European Tax Net.
Is this simply another sign of the times leaning towards a revenue driven European or even Global tax Policy?
Or is it just another step in a UK clampdown or even planned “fallout” from HMRC intervention and prior exchange of information between UK and other European member states over recent years with Aircrew being a part of a much bigger picture?
How and why? -May not help those for whom this change is regarded as either an unwelcome or unexpected imposition, but my guess is that it is most likely here to stay.
Having conducted a brief search on internet it looks as though the important German tax change referred to has been heralded in by the Amendment Tax Act 2007 in Germany?
Or does anyone else have other information on subject?
This appears to me to represent and confirm the new German interpretation of international tax law via the Double Taxation Agreement on the German side. Concerning amongst other aspects, prior exemption of foreign-source income (i.e. salary) being disallowed as an override on the prior take of matters- if it were to result in double non taxation.
Assume that this is the local German tax issue you are all are concerned about within this thread, which will no doubt be considered by many to be an important watershed primarily concerning the element of UK salary not taxed in UK for a Non Resident relating to overseas duties.
Clearly the evolving international tax picture continues to remain fluid in many respects and such changes were also talked about for the French tax interpretation as well, although that appears to have stalled pending further clarification and confirmation from the French which I understand is currently still awaited.
Is it simply a matter of “watch this space” for other countries?
Surely the best approach is to take regular professional tax advice within all relevant countries in order to ensure that all individual requirements are met.
No change for UK Non Resident concerning basis of UK tax position in respect of UK duties.
However the overall tax position should always be fully considered and settled in accordance with all relevant criteria and if necessary filing in more than one jurisdiction as appropriate.
Only time will tell exactly how the German authorities seek to apply these matters in future on a day to day basis.
Are you prepared to simply wait and see? Who is current group Tax Manager at company Head Office?
Have the company offered any update themselves?
Will they listen and offer consolidated advice or help after a unified approach by employees?
Whilst taxation is a vital factor it is of course only part of the overall equation but in the end no doubt personal decisions will be made and many may consider voting with their feet but the phrase of “beware jumping from the frying pan into fire” springs to mind so do consider all aspects and ensure that you have full facts before taking any next step.
So can anyone recommend a good German Tax Adviser?
Hope that this is of some help.
DJS