asked the Minister for Finance whether his attention has been drawn to the situation now arising in regard to persons who work in Northern Ireland but who live and pay income tax in the Republic, who will become liable to PAYE in Northern Ireland as from 1st April next while liable for tax in the Republic at the same time; and the proposals he has to ease the serious problems arising for such persons.
Written Answers. - Tax Liability
73.
Under the revised double taxation arrangements with the United Kingdom which will have effect as respects employee remuneration from 6th April, 1977, onwards a resident of the State who works in and is paid from Northern Ireland will be chargeable to United Kingdom tax on his earnings under the PAYE system. These earnings will, in principle, be also charged to Irish tax but there is an exception to this general rule. Where a governmental or local authority employee is a national of the United Kingdom he will not be chargeable to Irish tax on his earnings.
Where the earnings of an employee arising in Northern Ireland are charged to both United Kingdom and Irish tax double taxation will be eliminated by the granting of a credit for the United Kingdom tax payable against the Irish tax charged on the same earnings.