asked the Minister for Finance (1) whether citizens of this country who are employed in the shipping industry and who opt for payment of income tax in this country are required to pay more tax than if they had opted to pay their tax in Britain; and (2) if he will consider a tax concession to such persons for cash drawn outside Ireland while employed on non-Irish ships.
Ceisteanna—Questions. Oral Answers. - Income Tax Payments.
25.
(1) A person who is resident in this country and who is employed on a ship is liable to Irish tax on the whole of his earnings from the employment. The payment of any tax in Britain does not acquit him of that liability, but he is entitled to claim exemption from United Kingdom tax if he is solely resident here.
(2) I am not prepared to consider a special tax concession to Irish residents employed on ships abroad for cash drawn outside Ireland.
26.
asked the Minister for Finance if he is aware that people from the Six County area who have taken up employment in this part of the country are being compelled to pay income tax on their earnings in the North immediately on their taking up employment; and if he will take steps to rectify the matter.
A person who comes here on change of residence from Northern Ireland becomes resident here for the full income tax year in which the change takes place and is thus liable to tax on all his income no matter where it arises. Where that person has been employed in Northern Ireland and takes up employment here, a proportion of his allowances appropriate to the period of residence in Northern Ireland is set against the amount of his Northern Ireland earnings. Deductions of tax are made from his earnings here by reference to the balance of allowances. In any case of hardship arrangements are made to spread the deductions over a longer period.
If as a result of the change of residence the taxpayer is doubly taxed in respect of any part of his income he will be entitled to relief in respect of the doubly taxed income.