Akshata Murthy, the wife of British finance minister Rishi Sunak, has announced she will pay full UK taxes on her worldwide income after a controversy over her non-domicile status.
The daughter of former Infosys chairman Narayana Murthy said she would stop claiming "non-domiciled" tax exemptions on her nearly $1-billion fortune that makes her richer than the Queen.
Murthy owns about 0.9% stake in Infosys, entitling her to a dividend payment worth 11.6 million pounds ($15.1 million) last year.
Murthy, a millionaire who it was revealed this week holds non-domicile status and hasn’t been paying U.K. tax on overseas earnings, said that while her arrangements are “entirely legal," she will no longer take advantage of the rules allowing her to avoid paying British taxes on income earned abroad.
The decision comes after accusations of hypocrisy against her husband and UK chancellor Rishi Sunak, with opposition parties saying Sunak's family is benefiting at a time when the cost of living is going up.
As a non-domiciled (non-dom) UK resident she is not required by law to pay UK taxes on her overseas income.
Since moving to Britain nine years ago, Akshata has claimed RNOR (Resident Not Ordinarily Resident) or "non-dom" status which allows her to only pay taxes on her UK income. “Non-doms” can live in the UK all year round.
In a statement, Akshata said: “I understand and appreciate the British sense of fairness and I do not wish my tax status to be a distraction for my husband or to affect my family.”
“My decision to pay UK tax on all my worldwide income will not change the fact that India remains the country of my birth, citizenship, parents’ home and place of domicile," she added.
