I am an Australian who resided in the UK for around five years until moving back to Australia over a year ago. While in the UK I worked as an IT contractor and took advantage of a marketed tax minimisation scheme.
The UK Inland Revene wrote to me in December challenging the scheme and stating thay they were opening an enquiry into my 2003 and 2004 tax returns. They threatened to initiate formal action to recover what they consider to be unpaid taxes if I don't agree to a settlement.
If I were to decide not to pay any taxes deemed to be owing, would the Inland Revenue have any way of pursuing me in Australia? If not, what would happen if I were to return to the UK to work? How about if I were to visit the UK but not work there? Or if I were to travel to other countries in the EU?