Rishi Sunak admits to having had the American green card for more than a year after becoming chancellor

Rishi Sunak admitted he had a US green card for over a YEAR while he was chancellor as Boris Johnson said he was unaware his cabinet colleague’s wife has tax-reducing non-domiciled status. The prime minister endorsed the chancellor for doing an “outstanding job” on Friday and denied damaging leaks about the Sunaks’ tax affairs coming from No. 10. Sunak issued a statement in which he admitted to having a permanent resident card in the United States until around October. 12 months after becoming Chancellor, in February 2020.

He has come under scrutiny after learning his wife Akshata Murty, estimated to be worth hundreds of millions of pounds, has non-dom status that exempts her from paying UK tax on foreign income. A spokeswoman for the MP for Richmond, Yorkshire, issued a statement confirming a Sky News report that he had a green card while chancellor until he sought guidance ahead of his first trip to the United States in a government capacity in October this year. last.

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The US Internal Revenue Service says anyone with a green card is treated as a ‘lawful permanent resident’ and is considered a ‘tax resident of the US for US income tax purposes. .’. She said that Mr. Sunak continued to file tax returns in the United States, “but specifically as a non-resident, in full compliance with the law,” having obtained a green card when he lived and worked in the United States.

“As required by US law and as advised, he continued to use his green card for travel,” the spokeswoman said.

“On his first trip to the US in his capacity as government chancellor, he discussed the appropriate course of action with US authorities. At the time, it was deemed best to return his green card, which he promptly did.” All laws and rules have been followed and full taxes have been paid where required for the duration of your green card.”

Rishi Sunak and his wife Akshata Murthy

The prime minister defended Sunak when he was questioned at a Downing Street news conference alongside German leader Olaf Scholz. On the green card, Johnson said: “As I understand it, the Chancellor has done absolutely everything that he was asked to do.”

When asked if he knew that Mrs. Murty was not a Dom, Mr. Johnson replied, “No.” But he denied that No. 10 had been reporting against Sunak, who is seen as the front-runner for any possible Conservative leadership election, on the tax status of his wife.

“If there are any such reports, they are not coming from us at number 10 and God knows where they are coming from,” Johnson said. “I think Rishi is doing an absolutely outstanding job.”

Liberal Democrat leader Sir Ed Davey, who had asked Cabinet Secretary Simon Case to investigate the US residence’s “major conflict of interest”, suggested Sunak should be fired. “Never mind a green card, it’s time to give Rishi Sunak the red card,” said Sir Ed.

Shadow Chief Secretary of the Labor Party Treasury Department Pat McFadden questioned why Sunak kept the green card after becoming MP and whether it gave him “any tax advantage”.

Sunak criticized “nasty smears” about his wife’s tax affairs during an interview with the Sun and suggested it was a Labor smear campaign, something the party denies. But his allies told newspapers they suspect the number 10 is trying to undermine the chancellor.

The chancellor met his wife while he was studying at Stanford University and where they have a house, in Santa Monica, California, and they married in 2009. Ms. Murty, the fashion designer daughter of a billionaire, confirmed that she has status non-dom after the Independent’s website revealed the settlement on the day a national insurance hike affected millions of workers.

Sunak said his wife was entitled to use the non-dom arrangement as she is an Indian citizen and plans to return to her home country to take care of her parents. He insisted she is not trying to pay less tax, saying “dates don’t make a difference”, amid speculation she potentially avoided up to £20m in UK tax.

Ms Murty is reported to have a 0.91 prt vrny stake in Infosys, an IT company founded by her father, and received £11.6m in dividends from the Indian company last year. The non-dom status means that she would not have to pay UK tax at a rate of 39.35 per cent on dividends. India sets the rate for non-residents at 20 percent, but it can drop to as low as 10 percent for those who are eligible to benefit from the UK’s tax treaty with India.

Public records show that Infosys has received more than £50 million in UK public sector contracts since 2015. Ms Murty pays an annual fee of £30,000 to the UK government to maintain her status as non -Sun, said his spokesman.

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