tax avoidance

[aussieItman]

Advice needed! My GF's brother is heading back home to OZ next month for good. He has an Aussie and British passport and has been contracting here for 2 years. He has a limited company and basically has mismanaged it. To cut a long story short he owes taxman a nice lump ££, but is going to jump ship, so to speak, without paying him. I've advised him against it, but he's going to go ahead and do it. What are the implications for him in UK (if he were to return) and in Australia? Any constructive advice would be greatly appreciated..

[Cowboy Bob]

Advice needed! My GF's brother is heading back home to OZ next month for good. He has an Aussie and British passport and has been contracting here for 2 years. He has a limited company and basically has mismanaged it. To cut a long story short he owes taxman a nice lump ££, but is going to jump ship, so to speak, without paying him. I've advised him against it, but he's going to go ahead and do it. What are the implications for him in UK (if he were to return) and in Australia? Any constructive advice would be greatly appreciated..

Two words - extradition, jail

[aussieItman]

yeah I think Australia and UK tax departments have some sort of agreement/relationship. Didn't know they would extradite and jail however.. how would they trace him?

[MrsGoof]

.. how would they trace him?

unless he's gonna go walkabout in the bush , quite easily.

If he gets a job then the Gov. will know here he is!

[Cowboy Bob]

yeah I think Australia and UK tax departments have some sort of agreement/relationship. Didn't know they would extradite and jail however.. how would they trace him?

No idea how they'd trace him, but I'm sure they'll work hard at it. Deliberately skipping the country knowing you owe tax is tax evasion (not tax avoidance) and is a serious offence that will result in jail time should he ever be caught.

[aussieItman]

He got advice from PayslipPlus (or whatever it's called) that because his LTD company is dormant he won't be traceable? Doesn't really make sense to me.

[Cowboy Bob]

He got advice from PayslipPlus (or whatever it's called) that because his LTD company is dormant he won't be traceable? Doesn't really make sense to me.

That's not true. He'll be a registered director of the company and he will have made PAYE payments as well. He'll also have paid utility bills, had credit cards, paid council tax, registered a car with the DVLA etc etc. There are a lot of dots that can easily be joined.

[DimPrawn]

I had a friend that ran up many huge loans and credit card bills before buggering off to New Zealand, but he did not rob the tax man. That would be plain silly.

[tim123]

Advice needed! My GF's brother is heading back home to OZ next month for good. He has an Aussie and British passport and has been contracting here for 2 years. He has a limited company and basically has mismanaged it. To cut a long story short he owes taxman a nice lump ££, but is going to jump ship, so to speak, without paying him. I've advised him against it, but he's going to go ahead and do it. What are the implications for him in UK (if he were to return) and in Australia? Any constructive advice would be greatly appreciated..

I worked with a guy who wanted to do this once.

The advice that he got was "you'll be alright .... as long as you don't want to come back". (he paid up, .... and has come back)

tim