Prince Harry to be slapped with a ‘monumental tax bill’ if he stays in the UK for more than 183 days consecutively.
For the unversed, any foreign residents residing in the US for more than 183 days will be automatically slapped with taxes and in Prince Harry’s case, the amount is said to be ‘monumental.’
Royal experts believe that there will be no way for the prince to avoid this inevitable bill unless “he takes a break from his $14 million (£11 million) Californian mansion next month”.
With their days in Tyler Perry’s Beverly Hills mansion also accounted for, the couple has already been residing in the US for a total of 151 days.
LA tax lawyer David Holtz believes, “You can safely assume that someone at the Internal Revenue Service [IRS] is looking very closely at him. This is a big deal.”
“If Harry’s been in the US for 183 days straight then he’s done. But it is safe to assume they have had lawyers and tax experts grinding away on this issue for months.”
Per a report by the Daily Mail, the prince is in threat of having to pay both Federal, as well as Californian state taxes due to the prevailing Internal Revenue Service’s test.
This rule dictates that any foreign visitor who lives in the US for a total of 183 days, in a three-year span, is obliged to pay appropriate taxes with all international sources of income in question.
With this in mind, there is a high possibility that “Prince Harry’s bill could be monumental and could open up a can of worms for the Royal Family because the IRS will want to know all his sources of income.”
The tax expert also went on to say, “That’s not just his Netflix deal, but any monies he might have received in gifts from Prince Charles and any trust funds, savings accounts or other assets he has in the UK. That means the Royal books will be open to scrutiny” and “The US taxman is far more zealous than his UK counterpart.”
A separate expert also weighed in on Prince Harry’s future conundrum and claimed that the heir will have to reveal “every penny” to the IRS. “Meghan is a US taxpayer and her situation hasn’t changed, but Harry will have to tell the IRS about every penny he has received. That includes paying gift tax on any monetary gifts he received from Prince Charles and he will have to show any other source of income including trust funds set up after the death of Princess Diana.”
The Sun believes that if Prince Harry aims to elude this tax trap, he “would have to leave the US until 2023.”