Q: If your a non-resident alien residing in Canada in January and decide to move to UK after winning millions...
Can you live in UK for 183+ days during that tax year to use UK's tax treaty to not pay any taxes on the win opposed to paying 30% non-resident alien who resides in Canada. There is a certain set of rules you have to meet to meet IRS's residency status if I meet them and live in UK in the year of the win (let's say the win is in January).
Is doing this legal. Is this apart of tax planning and not bending any rules.
The withholding on the winnings is there regardless from the time of the win. So let's say IRS does not give back the money to the winner who is a UK resident during that tax year it would go to tax court.
Let's say IRS loses in court and you are awarded the the refund of the taxed win. Can IRS pursue getting back the awarded refund.
I just want to know in most cases would this work and is it legal.
Is choosing where you live for tax planning against any IRS rules?
And if it is breaking IRS rules, What if you genuinely wanted to live in UK?
A: Pose your question to a Tax Attorney.
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