Prince Harry will be hit with a “monumental tax bill” if he stays in the UK for more than 183 consecutive days.
For non-specialists, any foreign resident who has resided in the United States for more than 183 days will automatically be taxed and, in Prince Harry’s case, the amount would be “monumental.”
Royal experts believe there will be no way for the prince to avoid this inevitable bill unless he “takes a break at his $ 14million (£ 11million) California mansion for the month next”.
With their days at Tyler Perry’s mansion in Beverly Hills, the couple have already resided in the United States for a total of 151 days.
Los Angeles tax attorney David Holtz says, “You can safely assume that someone from the Internal Revenue Service [IRS] looks at him very closely. This is a big deal. “
“If Harry has been in the United States for 183 days in a row, then he’s done. But it’s safe to assume they have lawyers and tax experts who have been dealing with this issue for months.”
According to a report by Daily mail, the prince may have to pay federal and California taxes due to the Internal Revenue Service test in force.
This rule dictates that any foreign visitor who lives in the United States for a total of 183 days, over a period of three years, is obligated to pay appropriate taxes with all international sources of income in question.
With that in mind, there is a strong possibility that “Prince Harry’s bill will be monumental and open a box of worms for the Royal Family, as the IRS will want to know all of their sources of income.”
The tax expert also added: “It’s not just his deal with Netflix, but all the money he might have received in gifts from Prince Charles and any trust funds, savings accounts or other assets. which he owns in the UK. This means the royal books will be open to scrutiny “and” The US tax authorities are much more zealous than their British counterparts. “
Another expert also weighed in on Prince Harry’s future conundrum and claimed the heir will have to reveal “every penny” to the IRS. “Meghan is an American taxpayer and her circumstances have not changed, but Harry will have to inform the IRS of every penny he has received. This includes paying gift tax on any monetary gifts he has received. received from Prince Charles and he will have to show other source of income, including trust funds set up after Princess Diana’s death. “
The sun believes that if Prince Harry aims to escape this tax trap, he “should leave the United States until 2023”.