New-York tribune., 1909-03-07

eighth or a fifth OF the possessions abroad can
not be swept into the British Treasury by the (
operation Of the Dead Hand when the heirs !
come into possession. The death and succession |
duties viii apply only to the real estate and 10
the personal properly actually in the kingdom
when the millionaire's life comes 70 an end
Tho wealth that Is abroad where the dornicile -
cannot be conhscated by the officials at Sonner-
set House and used for the construction of
Dreadnoughts or for the payment Il old age
pensions. The penalty for abandonment Of for
eign dorniciIe will be the forfeiture Of a large
portion OF the estate when the heirs attempt to
divide II. A rich American was reminded Of this
fact not long ago when she asked her lawyer to
drew up her will She had become permanent
resident In England and had given up her dom
icile IN New York, and IN place OF per cent in
estate duties on the bulk Of the American prop
critics there would be liability of at least s. and
possibly as much 10 or 20. per cent If the
British death duties were increased this year.
Somerset House has displayed greedy appe-
tte for foreign fortunes in the Winans and other
test cases. but it has not succeeded in aboIishins
the primary right OF domicile abroad. Its most
Jealous officials now striving to enmesh
foreign visitors and temporary residents in the
net OF income taxation. They are claiming the
right OF CHASING residents Americans who
take houses for few weeks or months and OF
taxing their incomes wherever received or
earned. although they may intend to return to
their own country. Mr.. ]. Arthur Barratt who
after successful career in New York now has
large practice among Americans in London
contends that these claims Illegal under the
income tax act Of 1892 1t provides that no per-
son who is IN Great Britain for some temporary
purpose only, and not with any view or intent
Of establishing residence therein, and who has
nov resided "at one time Or several times for a
mar iTAH
| one year." shall be liable to the taxes charged
In what is known as Schedule D." After a six
| months residence there must be a return for
| income wherever 1t may be earned, and the for
efgn resident cannot escape taxation on equal
terms with the native Briton. The efficient
workers in the service, who are making rec
ords for promotion to more lucrative posts are
not content with waiting six months before tax
ing the foreigner. They are boldly applying
the act Of 1853 and the obligations of schedule
d" to temporary visitors, who have not been in
residence for six months and have no intention
Of remaining permanently in the kingdom For
cigners taking shootings in the North or Lon
don house for the season, or a country place for
a winters hunting entertaining, are sum
marily converted into British residents with
liability to heavy taxation for income earned or
received abroad.
The law Is drastic enough when residence is
assumed proved. 1t exposes TO income tax
alton profits or gains from any kind Of property
whatsoever, whether in the United Kingdom or
elsewhere; interest or dividends on investments
at home abroad; and income from any pro-
fessiOn. trade, employment or vocation wherever
practised, and the charges are levied upon the
resident without reference TO nationality, birth
or domicile. What frequently happens is the
| arbitrary assessment for income taxation Of the
foreigner who has taken residence for a short
| must be appeals to commissioners and high
courts, accompanied by expense and annoy
| ance A foreigner living temporarily in England
| with idea Of settling down permanently or
| Of abandoning his own country suddenly finds
| himself the tax levies and under obligation
| TO make a complete exposition OF his sources OF
| income and financial affairs abroad. Il Is not
| a pleasant experience, and convinces the victim
| that the gayety of the London season and the
charms OF English country house life may be
/ too dearly purchased
| In France, when exaetlons OF this sort have
been practised by overzealous officials, they have
| been reprimanded for offensive conduct to for
| eIRn visitors In England the tax gatherer has
| become so active and exaspeFating in his pur-
suit of foreigners that he may succeed in fright
/ ening them away altogether. The bleeding
nrocess NAV be carried too far. Americans, at
| Ieas+ need to be warned that while Free Trad
| ars are IN the last ditch fighting desperately for
| the defence of their principles. England is raw
| aged nv tax gatherers and foreigners are liable
| .o r.fde and levies L n. F.
IN THE INTEREST OF HUMANITY.