International Tax

I arrived home from Wellington yesterday to discover a letter from the United Kingdom's HM Revenue & Customs. It read:

Dear Mr P Wren-Hilton

We have looked at our current tax records for you and now believe we should be asking you to complete Tax Returns each year. On the reverse of this letter you will see why we ask some of our customers, including you, to fill in returns.

I turned over the letter and discovered that HMRC require tax returns if you are a company director in the UK. The fact that I generate no income from the position would not appear to be relevant. So I am looking at the time and potential cost of engaging a UK-based accountant to manage this locally. It makes me think. Will I have to follow a similar process every time Pingar incorporates in different countries? I could end up employing an army of tax accountants and form fillers.

I accept that there has to be a process to manage international tax obligations, but this one appears a little lopsided. I earn no income as a company director. John's visit to NZ at the end of the week could not be better timed. It will allow us to assess my actual role (if any) on the Pingar Ltd UK board. Falling foul of national tax authorities is certainly one precedent I want clipped in the bud. Resigning from this particular position might just be the best option.