Akshata, Wife of UK finance minister agrees to stop avoiding UK tax

In UK, a new political controversy has erupted Akshata, daughter of Infosys co-founder Narayana Murthy, is being targeted by the Opposition over her not paying taxes because she has non-domicile tax status. And because of this, Chancellor of the Exchequer, Rishi Sunak, the Finance Minister of Britain, has been been badly hit politically by the attack against his wife Akshata Murthy. There is little doubt that Sunak's wife, Akshata, has done nothing wrong by the laws of Britain - she is entitled not to pay certain UK taxes by UK law. Nevertheless, the Finance Minister's wife, who earns tens of millions of dollars, yet pays zero taxes on much of it, creates a negative perception. It hit the front pages of the British newspapers. The UK minister has accused his critics of launching a "smear" campaign against his wife.

In her statement announcing her decision to pay UK taxes on overseas income, Akshata said she did not want her non-domiciled status to be a "distraction" for her husband. Akshata said she will be paying UK tax on an arising basis on all her worldwide income, including dividends and capital gains, whenever in the world that income arises. "These new arrangements will begin immediately and will also be applied to the tax year just finished (21-22)," she said.

11/ In my time here I have invested in British businesses and supported British causes. My daughters are British. They are growing up in in the UK.

I am so proud to be here.

— Akshata Murty (@anmurty) April 9, 2022

"Since arriving in the UK, I have been made to feel more welcome than I ever could have imagined, in both London and our home in North Yorkshire. This is a wonderful country. In recent days, people have asked questions about my tax arrangements: to be clear, I have paid tax in this country on my UK income and international tax on my international income. This arrangement is entirely legal and how many non-domiciled people are taxed in the UK. But it has become clear that many do not feel it is compatible with my husband’s role as Chancellor," Akshata said.

"In my time here I have invested in British businesses and supported British causes. My daughters are British. They are growing up in in the UK. I am so proud to be here," she added. Akshata Murty, a fashion designer, owns shares worth almost a billion dollars in Infosys, according to the company's disclosure to the stock exchange. This makes her richer than Queen Elizabeth II, whose personal wealth is about 350 million pounds ($460 million), according to the 2021 Sunday Times Rich List. 

The outcry against Rishi Sunak and Akshata Murty began after the UK government hiked taxes in the middle of a cost-of-living crisis. The Opposition accused Sunak of "breathtaking hypocrisy" and targeted him over his wife's non-domicile status that shielded her from paying UK taxes on her overseas income. The couple were also targeted when Infosys did not shut offices in Moscow in the wake of Russia's invasion of Ukraine, with Akshata being accused of receiving "blood money" in dividends. Subsequently, the tech giant decided to shut its Russia office.