Rishi Sunak admits to holding US green card while Chancellor but returned it

Green card holders must pay US tax on their global income and they must make America their permanent home
Lily Waddell8 April 2022
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Rishi Sunak has admitted holding a US green card while Chancellor but he said he immediately returned it, according to a statement from his spokeswoman.

Now the Chancellor’s spokesperson said the politician returned his US green card after seeking guidance upon his first American trip in a Government capacity in October 2021.

Green card holders must pay US tax on their global income and they must make America their permanent home.

A spokeswoman for Chancellor Rishi Sunak said: “Rishi Sunak had a green card when he lived and worked in the US.

“Under US law, you are not presumed to be a US resident just by dint of holding a green card. Furthermore, from a US immigration perspective, it is presumed that permanent resident status is automatically abandoned after prolonged absences from the US.

“At the same time, one is required to file US tax returns. Rishi Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law.

“As required under US law and as advised, he continued to use his green card for travel purposes. Upon his first trip to the US in a Government capacity as Chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.

“All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”

At a No10 presser, Boris Johnson insisted Sunak had done “absolutely everything” required after it was reported he held a US green card for a period while Chancellor.

He told a Downing Street press conference: “As I understand it the Chancellor has done absolutely everything he was required to do.”

Earlier, Lib Dem leader called on Sunak to “come clean about his own financial arrangements”.

Lib Dem leader Sir Ed Davey said: “How could the man responsible for UK tax policy regard any permanent residency status for the United States as acceptable?

“This would be a huge conflict of interest - and a serious breach of the ministerial code. Rishi Sunak must come clean about his own financial arrangements and whether he has ever held a green card. If he will not, then we need an independent investigation to get to the bottom of this.”

It comes amid the furious row over Ms Murty’s non-dom status in what the Chancellor has called a “smear campaign” against them.

Although a spokesperson for Ms Murty has said she pays UK taxes on all her UK income, they also confirmed she pays £30,000 a year for non-dom tax status which means she pays a potentially much lower rate of tax on income earned overseas.

It has been reported she received £11.6 million in dividends in the past year from Infosys, the Indian tech company founded by her billionaire father Narayana Murthy.

Sunak defended his wife as he said she had not broken any rules and fully supported her choice to remain domiciled in India.

He told The Sun: “Every single penny that she earns in the UK she pays UK taxes on, of course she does. And every penny that she earns internationally... She would pay the full taxes on that.

“To smear my wife to get at me is awful... And if she was living here and didn’t just happen to be married to me, this obviously would not be at all relevant.”

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