Harry and Meghan quit Canada for Los Angeles to avoid paying tax in two countries
HARRY and Meghan quit Canada to move to Los Angeles because they did not want to pay tax in two countries. The Sun revealed yesterday that the Duke and Duchess of Sussex have permanently left Vancouver for California in “Megxit 2”. US insiders close to the couple say financial reasons are one of the biggest […]
HARRY and Meghan quit Canada to move to Los Angeles because they did not want to pay tax in two countries.
The Sun revealed yesterday that the Duke and Duchess of Sussex have permanently left Vancouver for California in “Megxit 2”.
US insiders close to the couple say financial reasons are one of the biggest factors.
Our source said: “Initially Harry and Meghan wanted to be based in a Commonwealth country — Canada — and earn their own money while still performing some royal duties.
“But their plan very quickly fell apart.
“They were told getting work visas in Canada would be difficult and because Meghan remains a US citizen — so is taxed on her worldwide income — she would end up paying in the US and Canada.
“Then the Canadian government made it clear they would not contribute to their security costs so it made much more sense to live in Hollywood and only pay US tax.”
Experts said Meghan, 38, would have to report self-employment income from sponsored social media posts or merchandise sold, while also paying a 15.3 per cent levy to cover taxes on social security and medicare.
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She would also have had to meet disclosure requirements to the US Internal Revenue Service on any foreign bank accounts.
The couple want to develop a billion-pound business, but Meghan would have only been able to exclude around £90,000 a year from tax.
Their plan to quit the UK was revealed in a Sun world exclusive in January.
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