“Now what on earth has London Mayor Boris Johnson done to deserve jail?” You might be wondering.
Well, the mayor – who was born in New York and holds a U.S passport – is being chased by U.S authorities to stump up cash towards American capital gains tax on an Islington home he sold for £1.2m in 2009.
If Boris does not pay tax, he’s breaching U.S. tax law which requires all citizens, including those with dual citizenship like Boris, to file a tax return and pay U.S. taxes.
On being asked whether he intends to pay the bill, Boris told the National Public Radio in the US recently: “I think it’s outrageous.
“Well, I’m – no is the answer. Why should I? I haven’t lived in the United States for, you know, well, since I was five years old.
“I could but I pay – I pay the lion’s share of my tax, I pay my taxes to the full in the United Kingdom where I live and work.”
Mark Sher, a US tax specialist at American private wealth manager Maseco, told City A.M.: “He’s a citizen with a US passport, and therefore must pay US taxes. The possibility of him going to jail is minimal, because he’ll probably end up paying the tax. But if he doesn’t, jail becomes a very distinct reality.”
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