Meghan Markle and Prince Harry’s baby faces US tax liabilities – ‘Watch out for taxman!’
Meghan Markle and Prince Harry are expecting their first child in late April or early May. But a shocking report from Fox business warns the royal baby could be exposed to the US tax system. The Fox Business host said: “The child of a US citizen and a non-citizen, i.e. Meghan and Harry, is considered a US citizen if the citizen’s parent, Meghan, was physically present in the country for five years before the birth, including two years under the age of 14. All of those apply to Meghan Markle. So, in other words, once the child reaches adulthood, that income will be exposed to the US tax system.”
Once the child reaches adulthood, that income will be exposed to the US tax system
Ashley Webster
Mr Webster said there are “complicated” solutions to the tax issue, adding: “Meghan Markle could renounce her US citizenship but that takes years.
“She could also apply to become a British citizen which also can take years.
“So, in other words, watch out for the taxman even though you are in the old Buckingham Palace or thereabouts.
“Now, the only thing that may be an out is if they offset taxes paid in Great Britain, may offset those that would be paid to the United States.
“It just shows you the US and the long arm of the IRS, one of the few countries in the world where they will continue to hunt you down.”
Jason Knauf, Prince Harry’s communications secretary told the BBC in December 2017 that Meghan plans to change her citizenship and will “comply with immigration requirements at all times” during the process.
Mr Knauf said: “She intends to become a UK citizen and will go through the process of that, which some of you may know takes a number of years.”
Under US citizenship laws, the State Department says “a person born abroad in wedlock to a US citizen and an alien acquires US citizenship at birth under section 301(c) of the Immigration and Nationality Act (INA), if one of the parents has had a residence in the United States or one of its outlying possessions prior to the person’s birth.”
The law requires that the American parent has lived in the US for at least five years, where two years must be after the age of 14.
The Duke and Duchess of Sussex’s child is entitled to apply for American citizenship as Meghan was raised in California, US, and only left when she began filming Suits in Toronto, Canada, in 2011 – when she was in her late 20s – before she got engaged to Prince Harry.
But because the royal baby will be born in Britain, the child will be a British citizen with one passport.
A lawyer told Huffington Post: “If the child is born in Britain, it will automatically be a British citizen, as Harry is British.”
According to royal expert Kelly Lynch the baby’s citizenship will set a royal precedent.
Ms Lynch said: “No one in royal history has had an American mother, it will be fairly interesting to see what happens.”
However, upon arrival, she added, “the child will be fully British”.
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