Curious about tax loop hole

[treblepebble]

I previously was a UK tax payer, left the UK, informed HMRC, but maintained my UK bank accounts and some offshore accounts to a UK address.

If I was sell property, with the proceeds going directly into one of those UK bank accounts. How would any authorities determine that I was liable to pay tax anywhere?

HMRC would be informed by the bank I assume, but they would then see I am not a UK resident/taxpayer, and my present country would have no means of knowing as the bank account is unaware I reside in this country.

Can someone explain to me why this isn't a simple way of avoiding paying tax? As surely many people would do something similar if it was this simple

 

[avalanche]

I previously was a UK tax payer, left the UK, informed HMRC, but maintained my UK bank accounts and some offshore accounts to a UK address.

If I was sell property, with the proceeds going directly into one of those UK bank accounts. How would any authorities determine that I was liable to pay tax anywhere?

HMRC would be informed by the bank I assume, but they would then see I am not a UK resident/taxpayer, and my present country would have no means of knowing as the bank account is unaware I reside in this country.

Can someone explain to me why this isn't a simple way of avoiding paying tax? As surely many people would do something similar if it was this simple

You may be required to present your tax residency certificate of another country to HMRC. If the amount of money is large, HMRC may even request you to show them tax return of that country where you reside.

You can count on gov to be stupid but you got only 1 life to live..

 

[legrant]

I previously was a UK tax payer, left the UK, informed HMRC, but maintained my UK bank accounts and some offshore accounts to a UK address.

If I was sell property, with the proceeds going directly into one of those UK bank accounts. How would any authorities determine that I was liable to pay tax anywhere?

HMRC would be informed by the bank I assume, but they would then see I am not a UK resident/taxpayer, and my present country would have no means of knowing as the bank account is unaware I reside in this country.

Can someone explain to me why this isn't a simple way of avoiding paying tax? As surely many people would do something similar if it was this simple

Yeah, you can do it and nothing may happen, however, if they catch you, get ready for a really long nightmare, and probably become unable to use the money till everything is over

 

[treblepebble]

Yeah, you can do it and nothing may happen, however, if they catch you, get ready for a really long nightmare, and probably become unable to use the money till everything is over

This bit that puzzles me is how would HMRC go about contacting me to even tell me this?

That and the bank have no reason to know that I am no longer UK resident.

I know that the bank reports to HMRC, but does HMRC report back to banks? As in my situation the bank would submit to HMRC my account activity, but would HMRC report back to them "This individual isn't a UK
tax payer"?

 

[legrant]

This bit that puzzles me is how would HMRC go about contacting me to even tell me this?

That and the bank have no reason to know that I am no longer UK resident.

I know that the bank reports to HMRC, but does HMRC report back to banks? As in my situation the bank would submit to HMRC my account activity, but would HMRC report back to them "This individual isn't a UK
tax payer"?

It may work for some time, but it could create a lot of problems too. Imagine the bank asks for updated data of your residency, are you going to commit fraud and send info proving to them that you still live in the UK? Are you going to send your real residency location and risk them sending information to the tax agency in said country?

If you live in a country where CRS (or any other information-sharing system) doesn't exist you may be okay as the bank wouldn't share information about the bank account with your current country (note that this could be considered tax evasion/fraud in your current country), however, as many other users have stated on the forum before, those kinds of things will not be working in the near future, so yes, you should be fine for some years or maybe even more, but eventually it could cause a lot of headaches.

If you're sure you're going to sell those properties, go live to a country with a territorial tax system, get your residency, sell the property, stay some more time so it doesn't look sketchy, and then move wherever you want.