The mission was simple.
Could I get ChatGPT to do all my work for me?
Did it work?
Here was the request
[AW] “Can you provide me with an explanation of the UK transfer of assets abroad provisions that a 12 year old would understand with examples please?
[ChatGPT ]“Sure, I’d be happy to provide an explanation of the UK transfer of assets abroad provisions in a way that a 12-year-old could understand.”*
Challenge accepted. Game on.
[ChatGPT] “The UK transfer of assets abroad provisions is a set of tax rules that are designed to prevent people from avoiding UK tax by moving their money or other assets to another country.
Basically, if you have money or assets in another country and you’re a UK taxpayer, you might still have to pay tax on them in the UK.”
Not wrong, I guess. But a bit vague. Can’t recall asking it to write in the style of HMRC guidance…
[ChatGPT] Here’s an example to help explain this:
Let’s say you live in the UK and you have a bank account in another country, like France. If you earn interest on that bank account, you might have to pay tax on that interest in the UK, even though the bank account is in France.”
This is correct, assuming “live” means being “resident” (ok, I asked for an explanation for a 12 year-old, I’m being picky).
[ChatGPT] This is because the UK transfer of assets abroad provisions say that if you’re a UK taxpayer and you have money in another country, you might still have to pay tax on that money in the UK.
Nope, it has nothing to do with the TAA provisions. A UK resident individual simply has a liability under basic principles.
[ChatGPT] Another example is if you own a property in another country, like Spain, and you rent it out to someone. If you earn rental income from that property, you might still have to pay tax on that income in the UK, even though the property is in Spain.
Again, even allowing for its tendency to use “might” (feel like I’m back working in one of the big accounting firms) this is broadly right… but:
[ChatGPT] This is because the UK transfer of assets abroad provisions say that if you’re a UK taxpayer and you earn income from assets in another country, you might still have to pay tax on that income in the UK.
…Again, for the wrong reasons.
I think our chatbot friend is struggling with the requirement that there must be a “person abroad”.
Looks like we all have at least another few weeks left before we are obsolete at the hands (or should that be robo-pincers?) of the AI tax adviser.
But why a 12 year old? I remember once sitting with a South American premier league footballer, whose English proficiency was pretty agricultural, trying to explain the remittance basis to him whilst he played on his X-Box. That’s why.
That gives me an idea:
[ChatGPT] “Of course, I’d be happy to provide an explanation of the UK remittance basis of taxation that a non-native English-speaking Premier League footballer might understand, even if he’s distracted playing Call of Duty on his Xbox!”
It goes on:
[ChatGPT] The UK remittance basis of taxation is a special tax system that applies to people who are not UK domiciled.
Fair play.
[ChatGPT] If you’re not from the UK but you live here, you might be able to use the remittance basis to pay less tax on your overseas income and gains.
Looks good.
[ChatGPT] “Let’s say, for example, that you’re a Premier League footballer from Spain who plays for a UK team.
You might have earned money from sponsorships or other endorsements in Spain before you came to the UK, and you might still be earning money from those sources now.
If you use the remittance basis, you might only have to pay UK tax on the money you bring into the UK, not on the money you earn abroad.”
Still on track here.
[ChatGPT] “To explain this in terms of Call of Duty, let’s say you’re playing a game online with your friends in Spain, and you earn some money from winning a tournament.
If you don’t bring that money into the UK, you might not have to pay UK tax on it, even though you’re living in the UK. It’s a bit like collecting gold coins in the game and deciding whether to keep them in your virtual wallet or bring them back to your real-life wallet.”
WTF! Showing empathy with the client? This is tax advice. Come on!?
[ChatGPT] “However, it’s important to note that the remittance basis can be complicated, and there are specific rules and requirements you need to follow to use it correctly. It’s always a good idea to speak to a qualified tax adviser who can provide you with advice tailored to your individual circumstances and help you understand how to use the remittance basis to your advantage.”
Phew! Thanks for that my AI tax adviser friend. Appreciate you dipping out there.
Maybe we do need to be manning the barricades after all…
If you have any queries about this article regarding my AI tax adviser friend, or tax matters in general, then please do get in touch.