Public outrage over Mercy’s tax system has been fueled by her husband’s decision to raise payroll taxes at a time when rising inflation is leaving Britons facing the biggest cost of living pressure since archives began in 1956. Murthy, an Indian citizen, is entitled to the so-called “non-domiciled” status in Britain, which is available to foreign nationals who do not consider Britain as their permanent residence. This in turn allowed her to choose to pay tax in the UK only on income she earned or transferred to Britain. Sign up now for FREE unlimited access to Reuters.com Register Mercy is the daughter of one of the founders of the Indian IT giant Infosys (INFY.NS) and owns about 0.9% of the company – giving her the right to pay a dividend of ,6 11.6 million ($ 15.1 million). last year. In a statement late Friday, after two days of critical media coverage, Murthy said she would pay UK tax on her global income, including dividends and capital gains, for fiscal year 2021/22 and beyond. . “I understand and appreciate the British sense of justice and I do not want my tax regime to distract my husband or affect my family,” she said. Murthy said her previous tax arrangements were “completely legal” and that she would continue to claim India, not Britain, as her residence. Sunak had previously stated that she intended to return to India to care for her parents when they became incapacitated. Sunak has been touted as the successor to Prime Minister Boris Johnson, whose position has been called into question following widespread criticism of illegal parties held on Downing Street during the COVID-19 lockdown and a number of other scandals. Having won praise for a consistent response to the pandemic, Sunak’s ratings have plummeted as he faces challenges on many fronts, with the tax burden reaching its highest level since the 1940s. Earlier on Friday, Sunak said in an interview that his wife’s financial investments were separate from his own and that questions about his father-in-law’s estate and his wife’s tax arrangements were politically motivated damage attempts. “Trying to stain him, to stain my wife to hit me is awful, right?” He told The Sun. The non-permanent residence scheme exempts more than 75,000 mostly foreign nationals in Britain from income tax abroad and has become a target for taxpayers, as it overwhelmingly benefits the very rich. read more The British Opposition Labor Party – which has called for an end to the non-resident status – said Mercy would also have to pay back the tax she had avoided in previous years if she sincerely acknowledged that her tax arrangements were now unfair. . Johnson said he did not know that Mercy was homeless and rejected the proposals made by his office against Sunak. “Rishi is doing an absolutely great job,” he said. Sunak also confirmed to media reports that he had left the “green card” for the United States – an immigration regime intended for US residents – after becoming Britain’s finance minister in 2020. A Sunak spokesman said he had paid his taxes in full and had not broken any laws or regulations. ($ 1 = 7 0.67672) Sign up now for FREE unlimited access to Reuters.com Register Additional references by Kate Holton and Andy Bruce, and Mrinmay Dey and Maria Ponnezhath in Bengaluru. Editing by Angus MacSwan and Daniel Wallis Our role models: The Thomson Reuters Trust Principles.
