Michael Winner Interview
Discussion
Read this in the Telegraph this morning http://www.telegraph.co.uk/finance/personalfinance...
Quite a fun read.
I was intrigued by this bit:
"In the late 1960s I was a bit naughty – I took some money and put it into an account in Switzerland without declaring it. That money eventually made its way back into England, but it haunted me that I hadn't paid tax on it.
About five years ago I decided to tell the Revenue and they went ballistic. They instigated a four-year detailed inquiry into my affairs with the threat of criminal charges. Eventually, we settled and I paid them £3m with another half million in lawyers' fees, whereupon the chief investigator said to me: "Now you are respectable, Mr Winner."
In the 1970s I put money from my films into offshore accounts in Guernsey and Jersey that invested it on the money market. I was told I didn't have to pay tax unless I brought the money into England, but the Revenue was determined to prove this was also tax evasion.
There were 99 offshore "rollover" schemes run by major banks, but apparently none ever had official clearance. Thankfully, at the last minute the Revenue backed down and my investigation led to the approval of all 99 schemes in one swoop. Nobody ever thanked me."
Then, when talking about his mortgage:
"I have resisted the idea of debt all my life, but my tax lawyer pointed out to me that whenever I bring money into the country I have to pay 30pc tax. He said if I borrow instead all I would pay is the interest of one percentage point over base rate.
A year ago I thought I had better take his advice because he was right – every time I moved money it came to me less a third. So now I have a large mortgage and millions in loans split between Bank of Scotland and Coutts. Of course, they know I can easily pay it off because I've got £35m in Guernsey."
............................................
So he's managed to accrue £35m in an offshore account. He only pays income tax if he brings it into the country. Normal people have to pay income tax on their worldwide income, offshore or not. He's a lucky man that the "Revenue backed down".
Quite a fun read.
I was intrigued by this bit:
"In the late 1960s I was a bit naughty – I took some money and put it into an account in Switzerland without declaring it. That money eventually made its way back into England, but it haunted me that I hadn't paid tax on it.
About five years ago I decided to tell the Revenue and they went ballistic. They instigated a four-year detailed inquiry into my affairs with the threat of criminal charges. Eventually, we settled and I paid them £3m with another half million in lawyers' fees, whereupon the chief investigator said to me: "Now you are respectable, Mr Winner."
In the 1970s I put money from my films into offshore accounts in Guernsey and Jersey that invested it on the money market. I was told I didn't have to pay tax unless I brought the money into England, but the Revenue was determined to prove this was also tax evasion.
There were 99 offshore "rollover" schemes run by major banks, but apparently none ever had official clearance. Thankfully, at the last minute the Revenue backed down and my investigation led to the approval of all 99 schemes in one swoop. Nobody ever thanked me."
Then, when talking about his mortgage:
"I have resisted the idea of debt all my life, but my tax lawyer pointed out to me that whenever I bring money into the country I have to pay 30pc tax. He said if I borrow instead all I would pay is the interest of one percentage point over base rate.
A year ago I thought I had better take his advice because he was right – every time I moved money it came to me less a third. So now I have a large mortgage and millions in loans split between Bank of Scotland and Coutts. Of course, they know I can easily pay it off because I've got £35m in Guernsey."
............................................
So he's managed to accrue £35m in an offshore account. He only pays income tax if he brings it into the country. Normal people have to pay income tax on their worldwide income, offshore or not. He's a lucky man that the "Revenue backed down".
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