British Prime Minister, Mr Rishi Sunak, had a green card until late 2021 that allowed him to declare himself a “permanent US resident” for tax purposes for almost two years while he was chancellor of the exchequer in the U.K and for six years as a Member of Parliament.
His wife Akshata Murty, also had a green card. The daughter of an Indian billionaire, she met Mr Sunak while they were both master of business administration (MBA) post-graduate students at Stanford University. The couple also own a penthouse flat in Santa Monica valued at $7.2m by property website Redfin.
Even though the Indian heiress, businesswoman, fashion designer and venture capitalist lives in the U.K with her now Prime Minister husband, she enjoyed a non-domicile status, which allowed her to pay significantly less taxes as “non-doms” are not liable for UK taxes on overseas earnings. Ms Murty earns a vast amount of money from shares in the multibillion-pound family business Infosys founded by her father.
When her non-dom status was made public, there was an outcry as many British people are currently struggling with not only basic living costs but they are facing an increase in taxes which many can barely afford.
It was then, that she then agreed to pay tax on “all worldwide income in future and for the last tax year, but not on backdated income, which could have saved her an estimated £20m of UK tax on foreign earnings from her billionaire father’s Indian IT company”, the Guardian reported. Despite this, critics say she needs to pay UK tax on her worldwide earnings on a backdated basis.
Sky News first reported on the Prime Minister as a holder of a US green card. However, Mr Sunak gave it up after he first visited the US in a government capacity as chancellor of the exchequer. His wife had given up the green card before him. Many still question why he held a green card while serving in the highest levels of UK.
Green card holders have to pay US tax on their worldwide income and pledge that the US is their forever home. The Department of Homeland Security states that a green card holder” is a permanent resident that has been granted authorisation to live and work in the United States on a permanent basis.”
As usual when it comes to politicians, the rich and famous, it is one rule for them, another for the rest of us.