Does the Entry/exit system affect tax?
For people travelling to and from the Schengen Zone (I am looking forward to next crossing the border) the number of horror stories is high - actually I expected a lot more. There is one interesting angle picked up by the Telegraph which I suspect isn't fully right but is interesting.
Their view is the EES (and I think actually the UK equivalent is more relevant) is going to be a great asset to the UK and other tax authorities figuring out who needs to pay tax where. They are probably right - they are nice big databases, with all your movements in it, and records when you are in Schengen (EES) and when you are in the UK (UK equivalent). So they are going to gave a close look at anyone claiming to be in the UK only 10 days a year when the database says 90... As non-residents don't have dedicated MPs in the UK. an easy target.
The solution:
- keep detailed yourself of where you are - and especially within Schengen, which country;
- check your tax residence carefully - do not fall into the trap of applying the 183 day rule - it is rather more complex than that specifically to ensure (rich) people cannot just spend the minimum time on a boat or tax haven to not pay tax.
If in doubt, check it out.
