The second edition of Taxation of Foreign Domiciliaries is an essential reference work for any practitioner involved in advising not only foreign domiciliaries, as the title suggests, but also those involved in many other aspects of personal and trust tax planning. The work is eminently readable and not only covers the legislation and case law that one would expect, but also the many areas of practice that are covered by the Revenue manuals. The book therefore is highly comprehensive. The work is up-to-date, including such important decisions as Grimm v Newman and R v Dimsey & Allen. In fact, the book contains one of the most thorough examinations of the definition of shadow director that is generally available. The book also covers the important proposed changes to domicile at its outset and is thoroughly cross-referenced to the Income Tax (Earnings and Pensions) Act 2003.

Because of the logical approach to its contents the book can either be read generally or used as a reference work for specific research. The contents cover complex areas, including the taxation of offshore funds and the taxation of capital redemption policies. It also has an extensive analysis of the transfer of assets abroad provisions under ss 739 and 740. It also covers the topic of s 660A and its interaction with s 739. The work further deals extensively with the residence of individuals and trustees and the issues arising in the years of arrival and departure.

The analysis is thorough and it is difficult to argue with any of the contents of the work although there are one or two areas where the reviewers had a slight difference of opinion with regard to the stated Revenue practice. In particular, the author suggests that it is common practice to appoint a protector to appoint and sometimes dismiss trustees. The author is satisfied that the protector cannot be regarded as a trustee and brings an extensive analysis to prove this. However, in the reviewers' experience, the protector can often inadvertently take on the role of trustee and consequently the non-residence status of a trust can often be impaired. This should be "red flagged" in the work.

James Kessler demonstrates his extensive expertise in this specialist area by not only logically elucidating the analysis of the Taxes Acts but also the historic setting of some of the relevant provisions. For example, the remittance basis of foreign income does not apply to property situated in the Republic of Ireland. The reason for this, according to James Kessler, is historical and is due to the Union with Ireland Act of 1800 which provided that the Kingdoms of Great Britain and Ireland should be united for ever after into a single Kingdom known as the United Kingdom of Great Britain and Ireland. Politically, "forever" lasted until the creation of the Irish Free State in 1922. Yet despite this, Great Britain and Ireland are even today regarded as one Kingdom for the purposes of the income tax legislation. Some people will therefore be pleased to know that at least in the backwater of taxation, Great Britain and Ireland are still regarded as "one Kingdom".

In summary, the book should form part of any taxation practitioner’s library and is certainly the most authoritative work in this area.

Brian J White BA FCA ATII AIIT

Andrew Shepherd BSc (Hons)CTA ATT

Deloitte