Part 5 – Where did Brexit take place?
To end the ongoing austerity measures among its member states, the European Union decided to end massive tax avoiding practices, but Tory Brexiteers managed to deceive the British people that they would be better off outside the EU the and protect the sovereignty of wealthy tax-dodgers from the new Anti Tax Avoidance EU Directive!
Although the vast majority of people are still appalled by Tory Brexiteers’ tax avoidance scam, others dismiss them as utter nonsense and manipulative attempts to undermine the British democracy.
Individuals who dispute claims that EU’s new Anti Tax Avoidance Directive is the only reason why we are leaving the EU, argue that the European Commission’s new measures, such as the “Exit Taxation”, are already included in the British law.
However, although the EU’s “Exit Taxation” is based on the the UK law, there is a tiny difference over its territorial jurisdictions that threatened the UK sovereignty of its tax havens and wealthy tax-dodgers.
The purpose of UK’s “Exit Taxation”, included in the Taxation of Chargeable Gains Act 1992, is to prevent companies from moving their assets outside the UK, by imposing an exit charge on the chargeable profits gained in the UK territory, before they were relocated to another tax jurisdiction.
Technically, the British overseas tax haven territories are part of the UK, therefore if someone avoided paying their taxes by transferring their capital gains to British offshore tax havens, they aren’t obliged to pay the TCGA 1992’s exit charge, because their assets haven’t been moved outside the UK territory.
The “Exit Taxation” rules set out in the Article 5 of EU’s Anti Tax Avoidance Directive are similar to the ones set out in the British law, because will be also imposed on capital gains generated in the territory of the Member State of origin.
The EU’s “Exit Taxation” will be levied on certain cross-border transfers of assets, tax residence or business carried out by the permanent establishment within the EU or in the third-country context, such as:
1. transfers assets from its head office to a foreign permanent establishment;
2. transfers assets from a permanent establishment in a Member State to a foreign head office or permanent establishment;
3. transfers its tax residence to another country; or
4. transfers business carried on by its permanent establishment in a Member State to another country—all in so far as the Member State of exit loses the right to tax due to the transfer.
However, there is a slight difference between the British “Exit Taxation” and EU’s “Exit Taxation” laws that alarmed the British tax-dodgers who campaigned to leave the EU, which can be traced in the following descriptive image created by the European Commission:
According to the new EU Anti Tax Avoidance Directive, the UK has to has to ensure that the “exit tax” is collected the “value of the product before it was moved out of EU”.
The British overseas territories are part of the UK, but not part of the EU, therefore, if the UK remained in the EU, they would have to implement the EU’s new Anti Tax Avoidance Directive, before these assets are transferred to the British offshore tax havens.
This is also confirmed by Nigel Farage, addressing the European Parliament’s joint debate on tax fraud and tax havens, whereby he reminded his fellow members that tax avoidance is legal in the UK and accused Brussels of interfering by driving a wedge between the United Kingdom and its overseas tax havens.
“Avoiding tax, which is not illegal, but it gives this whole chamber this morning a high moral tone. And as Mr Barroso says it is all about the perception of fairness. Because there is the added bonus of course that it drives a wedge between the United Kingdom, the Channel Islands, the Isle of Man, and the Caymans.”
Since the year 2013, Nigel Farage was aware of Brussels’ initiative to end tax-avoiding practices would terminate the ongoing legal tax avoidance by transferring assets from the UK to the British offshore tax havens but declined to inform the British public or his UKIP electorate about this astonishing initiative that would improve the British living standards and public services.
The British economy is the largest among the EU member states, yet because of the ongoing tax-avoiding practices, which are still legal in the UK, the British citizens are subjected to harsh austerity measures and food banks.
The EU wanted to cease the ongoing austerity measures and food banks in the UK by ending the massive tax avoiding practices, but Tory Brexiteers managed to protect their sovereignty of our wealthy tax-dodgers by deceiving the British people into voting to leave the EU!
This is Part 5 of the extensive research on Brexit, which focuses on the critical 5Ws, such as:
1. What happened before Brexit?
2. When did Brexit take place?
3. Who supported Brexit?
4. Why Brexit happened?
5. Where did Brexit take place?