Sooo… Elizabeth Taylor reportedly tried to do it. Ditto Madonna and, if you believe the rumors, the rock group U2. Yeah, you know what I’m talking about: moving to avoid taxes.
It’s not just the US with complaints about taxation. Many countries in the EU routinely complain about their high rates of taxation, among the highest in the world. And now it’s finally hit the French where it counts: in their iPods – and stereos – and other assorted audio devices. Their beloved Johnny Hallyday has announced that he’s moving to Switzerland in order to lower his tax burden, including inheritance tax. He joins fellow French citizens skier Jean-Claude Killy, tennis player Amelie Mauresmo, race driver Alain Prost and singer Charles Aznavour, who have all reportedly moved to avoid the higher rates of tax, which climb up to 60% in France.
To clarify, Hallyday is not really moving to Switzerland full time. He plans to spend just over half the year based in a posh resort in Gstaad. Makes sense. In order to benefit from the different tax rate, he must live in Switzerland for six months and a day each year.
Take note, Hollywood celebs: as Elizabeth Taylor found out, such an arrangement is not so easy in the US. If you move simply to avoid taxation, the IRS will deem you a US tax citizen and tax you anyway. And since the US believes that it can tax you on your worldwide income, a temporary move doesn’t really help. Apparently, that’s not the case in France.
As for Hallyday, will he ever move back? Maybe. He claims that if the conservative candidate for French President, Nicolas Sarkozy, who promises to lower taxes wins, he may move back. Hmm. Actual stance on taxes or campaign ploy? You be the judge.
