Monday, June 28, 2010

EU Petition reply

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27th June 2010
A reply from the EU Commission for Petitions was received.
The Petition was on the basis that the Double Taxation Convention France/UK discriminates between persons based on......
a. the origin of the income and b. the nationality of the person.   
The reply quotes a case-law of the Court of Justice which in effect says that nations can determine taxation on the basis of the national origin and form of the income.  
It would seem to be ignored that this results in a differential of taxation load!
The reply can be viewed at.   Reply from EU.
This is of course disappointing.  One must remember that even if such discrimination does not contravene EU law, a contravention occurs internally  within the Double Taxation Convention. Article 25 of the DTC states "Individuals of a contracting State shall not be subjected .... to any taxation or requirement .. which is more burdensome than the taxation .. to which nationals of that other State in the same circumstances, in particular with regard to residence, are or may be subjected."  - In short a British National resident in France should not have a greater tax burden than his French neighbour with the same source and amount of income.
It is as plain as day to me that this article is infringed.
Unless some lawyer who will act 'pro bono publico' will step in, perhaps we run into a sand bank on this.  Yet a reply is still awaited from Her Majesty's Customs and Revenue on this matter.  Yet I fear the Civil Service runs the country, and no Civil Servant welcomes change! 
If ever a 'Minister for the Expatriate' is appointed,  such a person could take up the cudgel.
As I say "If one does nothing - nothing gets done."  One must fight for a just cause or else live with a conscience that one did not try.