JAYTEE

Member
Crackdown On Foreign Bank Account Holders
Read this article in the paper this morning. If you didn't declare it on a tax return then how would they find out. Also, don't people pay tax to the Turkish government on the interest. Another attempt by the British taxman to screw us out of even more money!!
 
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Saoirse

Moderator
Top Poster Of Month
Crackdown On Foreign Bank Account Holders
if you are already paying tax at source to the Turkish system any further payment to the UK taxman should be negligible
 

Martyn

Member
Crackdown On Foreign Bank Account Holders
I think the issue is more declaring it than anything.
 

KKOB

Completely Chillaxed
Crackdown On Foreign Bank Account Holders
It boils down to the difference between Tax Avoidance and Tax Evasion.

It's not illegal to avoid paying tax.

It's illegal to evade paying it.
 

immac

Senior Member Has-Been
Crackdown On Foreign Bank Account Holders
Even if you are paying tax in Turkey on earings or a property, it is an offence not to declare it to UK HMRC. Not declaring that you have a house abroad is also an offence.

They find out because the UK and Turkish tax computers are linked.

Ian
 

mdon

Member
Crackdown On Foreign Bank Account Holders
And so they should find out, there are billions spend tracking now benefit fraud which is usualluy small amounts of money, yet we are happy for people who can afford 2 homes to scam the tax system
 

v6cod

Living in Okcular
Crackdown On Foreign Bank Account Holders
Well I don't earn anything from my property abroad i.e. don't rent it out.

So I am only earning interest on money I have in a turkish bank account and thought that as you paid tax on that at source you weren't obliged to give anything extra to the UK tax man.

According to the HMRC website

DT19106 - Particular agreements: Turkey: Interest
Interest arising in Turkey and beneficially owned by a United Kingdom resident may be taxed in Turkey at a rate not exceeding 15 per cent.


As I read it you only pay tax once, and if the two tax computers are linked ,due to the reciprocal agreement I suppose, would you still need to declare it.
 

jcrian

Member
Crackdown On Foreign Bank Account Holders
So I am only earning interest on money I have in a turkish bank account and thought that as you paid tax on that at source you weren't obliged to give anything extra to the UK tax man.

would you still need to declare it.

Yes any income or interest if you are a UK resident you are required to declare to the UK tax man including the tax you have already paid in Turkey or anywhere else abroad.
 

ceemac

Shake It Baby...
Crackdown On Foreign Bank Account Holders
So has everyone here done that then? Declare their Turkish property or rental income?

Answers on a postcard please....:becky:


C
 

SuperBogs

I miss you Pebble
Crackdown On Foreign Bank Account Holders
DT19172 - DT: Turkey: double taxation agreement, Article 23: Elimination of double taxation
(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):

(a) Turkish tax payable under the law of Turkey and in accordance with this Agreement, whether directly or by deduction, on profits, income or chargeable gains from sources within Turkey (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Turkish tax is computed.
(b) In the case of a dividend paid by a company which is a resident of Turkey to a company which is resident in the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Turkish tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the Turkish tax payable by the company in respect of the profits out of which such dividend is paid.

(2) For the purposes of paragraph (1) of this Article, the term `Turkish tax payable` shall be deemed to include any amount which would have been payable as Turkish tax for any year but for an exemption from, or reduction of, tax granted for that year or any part thereof under any of the following provisions of Turkish law:

(a)

(i) Additional Articles 1 to 6 of Chapter VIII of the Income Tax Law (Law No. 193 of 31 December 1960, as amended);
(ii) Paragraph 9 of Article 8 of Chapter 1, Part 11, of the Corporation Tax Act (Law No. 5422 of 3 June 1949, as amended);

so far as they were in force on, and have not been modified since, the date of signature of this Agreement, or have been modified only in minor respects so as not to affect their general character; or
(b) any other provision which may subsequently be made granting an exemption from, or reduction of, tax which is agreed by the competent authorities of the Contracting States to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character.
Provided that relief from United Kingdom tax shall not be given by virtue of this paragraph in respect of income from any source if the income arises in a period starting more than ten years after the exemption from, or reduction of, Turkish tax was first granted in respect of that source.

(3) Subject to the provisions of the law of Turkey regarding the allowance as a credit against Turkish tax of tax payable in a territory outside Turkey, United Kingdom tax payable under the law of the United Kingdom and in accordance with this Agreement in respect of income (including profits and chargeable gains) derived by a resident of Turkey from sources within the United Kingdom shall be allowed as a deduction from the Turkish tax on such income. Such deduction, however, shall not exceed the amount of Turkish tax, as computed before the deduction is made, attributable to such income.

(4) For the purposes of paragraphs (1) and (3) of this Article, profits, income and capital gains derived by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Agreement shall be deemed to arise from sources in that other Contracting State.
 

stephie

Stephie
Crackdown On Foreign Bank Account Holders
We found all our tax deducted at source in Turkey - HSBC Serik - so should be alright. Apparently the british tax authorities are aware too - and that is from someone in the tax office!
 

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