Blog/The Hunt for Taxes
Posted Jan 8, 2018 by Martin Armstrong
The marriage of Prince Harry with Meghan Markle, an American, presents a real nightmare for the Royal Family. Meghan is required by law to not merely pay taxes on worldwide income, but if she receives money from her husband or his family, that will be income of gifts both of which will be taxable in the USA even if she never returns to the United States – EVER!
Worse still, Meghan will have to file Form 8938 if she has more than $300,000 worth of assets in any given tax year. She is already a millionaire for her acting career so filing Form 8938 means she will have to reveal in great detail all assets she owns. This may now include foreign trusts and details of the royal family’s estate that was previously undisclosed. Only the USA and Japan tax worldwide income. Everyone else is far more civilized. You do not pay taxes if you live overseas. The theory is rather simple. You pay tax because you are using the services. Under USA law, you are owned by the government and are thus the property of the state and whatever you make even living outside the USA, taxes art due.
The tax code is proving a difficult obstacle for the Royal Family.