Legal Question in Tax Law in United Kingdom

UK Income Tax Deducted At Source Although Living Abroad

I have lived in the Turkish Republic of Northern Cyprus since 2002 but UK income tax is still deducted from my local government pension. Is this correct, particularly considering that there is a double taxation treaty with Cyprus? We are led to believe that the whole of the island of Cyprus is now in the EU but the Inland Revenue seem to take the view that Northern Cyprus, currently being unrecognised by all countries other than Turkey, does not fall under the double taxation treaty. Additionally, if there is a 'solution' to the Cyprus 'problem' and the TRNC is recognised by the UK for direct flights, etc. will this help my case to elect to pay Income Tax in the country of my abode rather than the UK?

Asked on 3/06/05, 7:23 am

1 Answer from Attorneys


Re: UK Income Tax Deducted At Source Although Living Abroad

Sir,the incident we have got here is just a mess.Because of the problem about the recognization of Northern Cyprus such cases are very popular nowadays and hard to deal with.İf TRNC is recognized by UK there will remain no problem but this is not seem to happen I must say.I suggest you transfer your business to an attorney or somebody else you can really trust and don't be a subject to the income tax anymore until the double taxation treaty negotiations come to an end.If more help is needed you can call me from + 90 532 6471666.

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Answered on 3/09/05, 4:07 am

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