The United Kingdom's Chancellor of the Exchequer Rishi Sunak's multi-millionaire wife, Akshata Murthy, has claimed a non-domicile status, according to a report published by The Guardian on 6 April.
The non-domicile status permits her to not pay tax from her earnings outside of the United Kingdom.
Therefore, Murthy can save up to millions of pounds in tax on dividends collected that collects from her family's IT business.
She is the daughter of Narayana Murthy, the billionaire co-founder of IT services company Infosys, and she owns a 0.93 percent stake of the company.
Murthy reportedly receives about 11.5 million pounds in annual dividends from her stake in Infosys, but her non-dom status will ensure that she avoids paying tax on these foreign earnings.
Her spokesperson, in response to the news, said, "Akshata Murthy is a citizen of India, the country of her birth and parents' home. India does not allow its citizens to hold the citizenship of another country simultaneously. So, according to British law, Ms Murthy is treated as non-domiciled for UK tax purposes. She has always and will continue to pay UK taxes on all her UK income."
The revelation of Murthy's non-dom status comes in the backdrop of Sunak's popularity plummeting due to the cost of living crisis.
In March, during the Spring Statement Tax Plan, Sunak upped the burden on UK taxpayers to its levels highest since the 1940s.
Additionally, this is not the first time Murthy has come under the opposition's scanner.
Sunak was asked by reporters on 24 March about the Russian presence of Infosys, given the fact that Russia is being pounded by UK sanctions for the invasion of Ukraine.
"They (Infosys) operate in Moscow, they have an office there, they have a delivery office there. They've got a connection to the Alpha Bank in Moscow. Are you giving advice to others that you're not following in your own home?" a Sky News reporter had asked the chancellor during an interview.
With respect to his wife being questioned over links to Russia, Sunak, a few days ago, had compared his feelings to those of Will Smith, the Hollywood star whose own wife was mocked at the 2022 Oscars.
"At least I didn't get up and slap anybody, which is good," the chancellor had jokingly added.
(With inputs from The Guardian and Sky News)
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