- Whether Lyle Grace had sufficiently broken his connections with the UK in 1997 (the year he claimed to have taken up Residence in South Africa) and established them in South Africa. This is a concept of establishing a "Distinct Break" and is a crucial one.
- The other issue was whether, as HMRC contended his regular return to the UK to pilot long haul flights for British Airways were not for "some temporary purpose only"; but were for a regular and permanent purpose, sufficient to constitute Residence.
constitute the "Distinct Break" in the pattern of a taxpayer's life?
Airways' payroll. In all, some several hundred Pilots' cases were taken under Enquiry.
of three Court cases and now a fourth must probably come close to all
the outstanding tax and interest owed.
tax rates than the UK!
income and capital gains. Take Spain offering 24% flat rate on Spanish
income for six years and Portugal offering 20% on Portuguese income
for ten years.
that the Treaty will usually contain an Article (usually Article 3).
So, if a taxpayer is Tax Resident under the general laws of BOTH
Countries; The Treaty will award taxing rights based on the tests laid
out in the Article, known as the "Tie-Breaker" Clause.
the UK/South Africa Treaty would have been used to determine his tax
status. Clearly, the number of days he spent in South Africa were not
sufficient to make him Tax Resident there, under South African tax