As global mobility increases, so does scrutiny from tax authorities. For high-net-worth individuals (HNWIs), maintaining compliance is no longer just about filing on time. It’s about having a bulletproof record. Increasingly, the cornerstone of that record is location data.
With governments investing in advanced technologies to track movement, automate audits, and cross-reference digital footprints, location data in tax audits can actually protect HNWIs. In this article, we examine why and how through real case studies. We’ll also explore all the ways Daysium enables HNWIs to stay ahead.
Around the world, tax agencies are embracing artificial intelligence, machine learning, and automated systems to detect non-compliance, often before taxpayers even know they’re under review.
This tech-driven approach means that even unintentional errors, like miscounting your days, can trigger a full investigation.
The latest data suggests that HNWIs contribute just 4% (£1.9 billion) of the UK’s total tax gap. HMRC has also increased its compliance yield from wealthy individuals from £2.2 billion in 2019/20 to £5.2 billion in 2023/24. This shows these audits are a priority to the tax authority.
The UK’s High-Risk Wealth Programme (HRWP) targets individuals with assets over £2 million or income over £200,000. These individuals often have complex, cross-border affairs, and even small mistakes in day counting can lead to significant liabilities.
In Case 177TACD2020, a numismatist needed to prove he wasn’t in Ireland for more than 183 days in any given year from 2002 to 2006. His case hinged on receipts and card transactions, but the Appeal Commissioner ruled these were insufficient. A car rental proved only that “the appellant had occasionally rented a car,” not that he had left the country.
In 08TACD2020, a UK citizen commuting to work in Ireland found themselves entangled in a complex web of split residence rules, elective declarations, and inadequate documentation. While he eventually prevailed, the lack of contemporaneous evidence prolonged the process.
UK businessman Kevin McCabe claimed to have moved to Belgium yet retained deep UK ties through property, business operations, and frequent travel. The court found that these ties undermined his non-residence claim, resulting in a significant tax liability.
In this recent UK case, a taxpayer breached the 45-day limit under the Statutory Residence Test due to caring for her twin sister. The legal journey began in 2022, with the Court of Appeal overturning an earlier Upper Tribunal ruling in February 2025. In this drawnout case, the quality of evidence was called into question.
These cases all demonstrate the same thing: day counts are not enough. You need real-time, verifiable data to prove where you were and why.
Location data bridges the gap between claim and proof. Here’s how:
Tax authorities value records created at the time of the event. Geo-tagged photos, GPS logs, and timestamped entries provide the kind of evidence that holds up in court.
If you say you weren’t in the UK for more than 90 days, a spreadsheet won’t cut it. However, GPS records, combined with boarding passes and event photos, can.
Audits are prolonged when data is patchy or inconsistent. With clear records, cases are easier to close. This saves time, reduces stress, and keeps legal fees under control.
Daysium transforms location data into a strategic compliance asset in tax audits. Here’s how:
Daysium’s companion app logs a user’s location passively and accurately. No need to remember where you were as your phone remembers for you.
Users select bespoke tax rules (or “Rulesets”) based on their advisor’s guidance. These govern allowable days and automatically alert the user as thresholds approach.
Users can attach geo-tagged documents (such as boarding passes, photos, and notes) to each travel event. This turns a day count into a legally defensible record.
Daysium encrypts and stores records securely, ensuring access if a tax authority looks back five or even ten years, as in the Irish court cases.
The world is moving toward automatic transparency:
Daysium’s partner tax specialists report a sharp rise in cross-border scrutiny and requests for location-based proof.
As one of Daysium’s Founding Partners, Stephanie Wickham of Expat Taxes puts it:
“Tax authorities are increasingly using more sophisticated data analysis in their audit interventions and risk management. So for clients that frequently cross borders a platform such as Daysium is invaluable in ensuring that a solid evidence book can be presented in the event of a Revenue enquiry/intervention.”
Tax audits are changing. Authorities don’t just want your numbers on a spreadsheet. They want the story behind them. By presenting location data in tax audits, you make that story provable.
HNWIs who maintain precise records using tools like Daysium don’t just stay compliant but they gain peace of mind. They can plan future travel with confidence, knowing their residency status is backed by real-time data, not assumptions. And if the authorities come asking questions, they have the confidence to state, “There’s nothing to see here. Everything is in order.”
Don’t let missing evidence be your downfall. Let Daysium turn your travel history into a protective shield. Book a discovery call today.
Created in partnership with industry experts, tackle the complex challenges of day counting and tax record-keeping.
Monaco may offer tax-free living, but tax residency rules don’t stop at the border. This guide breaks down why Monaco Family Offices must go beyond local paperwork to manage global day counts to protect their clients from dual tax residency, audits, and unexpected liabilities.
For family offices managing globally mobile clients, tax residency is a strategic part of wealth management. But reliance on manual day counting leaves many exposed to risks that an automated day counting platform can solve. This article looks at how automation enhances compliance, reduces audit exposure, and brings clarity across jurisdictions.
Think you can prove tax residency if asked? In an age of AI audits and digital trails, your word isn’t enough. This article breaks down what counts as real evidence, why weak records won’t cut it, and how automation can secure your compliance without disrupting your lifestyle.
Global tax compliance is evolving fast with governments leveraging AI and real-time data to scrutinise globally mobile individuals. For HNWIs and their advisors, tax technology offers a way to stay ahead. Let’s explore how digital tools like Daysium help automate day counting, reduce compliance risks, and build audit-ready evidence for strategic tax residency management.