Dáil Éireann - Volume 423 - 07 October, 1992

Written Answers. - Tax Liabilities of Residents Abroad.

117. Mr. Barry asked the Minister for Finance if he will outline the criteria to be met by Irish taxpayers who wish to take up residence abroad and change their tax liabilities from this country and the way in which compliance with these criteria are monitored.

Minister for Finance (Mr. B. Ahern): An individual who wishes to take up residence abroad in circumstances in which he will not be liable to Irish tax must be resident abroad for a period which includes a full tax year. He will remain resident for Irish tax purposes for any tax year in which he spends at least 183 days in Ireland. He will also remain resident for any tax year in which he spends substantial periods in Ireland or in certain circumstances if he has a place of abode available to him in Ireland.

For a visit to be regarded as substantial the individual must spend at least 92 days in Ireland in the tax year and he must also have spent time in Ireland in the four preceding tax years. The total time spent in Ireland in the preceding years must have exceeded 368 days.

An individual who goes abroad for purposes other than work will be resident in Ireland if he has available to him a place of abode in Ireland and makes a visit of whatever length to the country in a tax year.

If the individual who leaves Ireland is a director or employee paid from Ireland the employer is liable to deduct PAYE [156] until he receives notification from the Inspector of Taxes that Irish tax is not due. If the Inspector becomes aware of a change in circumstances the notification may be withdrawn. If the individual becomes resident while a notification is in force he becomes a chargeable person subject to self assessment. He is accordingly bound to make returns and payments to the Irish tax authorities.

If the individual was a chargeable person under the self assessment system prior to going abroad he would continue to be required to lodge returns until the Inspector of Taxes was satisfied that there is no liability to Irish tax. The circumstances of individuals not required to make returns for reasons of non residence are reviewed periodically to ensure that they continue to be outside the Irish tax net.

Individuals who leave Ireland would be required to make a return under the self assessment system if they become Irish resident for tax purposes and are chargeable persons as defined in section 9 of the Finance Act, 1988. The Revenue procedures will operate to ensure that the individual makes returns. The individual's residence position since he left Ireland would be examined as part of the screening of returns.