Theresa Ahearn
Question:49 Mrs. T. Ahearn asked the Minister for Finance if a change in the number of tax-free days has been permitted to a person (details supplied) in County Tipperary whose income is derived outside of the Republic of Ireland.
Written Answers. - Income Tax Payment.
The residence of an individual for tax purposes in a particular year can only be determined at the end of the year having regard to all the relevant circumstances. As the case to which the Deputy refers appears to relate to the current tax year, she will appreciate that it will not be possible for the Revenue Commissioners to make a final determination until 5 April 1995.
The Deputy will be aware that this year's Finance Act contains new provisions relating to the residence and ordinary residence of individuals in the State for tax purposes. Generally, these provisions apply from 6 April 1994. However, in a limited number of cases, described in the legislation, the new residence tests have been deferred until 6 April 1995. Thus the old residence tests and certain administrative and legislative practices related to them which applied until 5 April 1994 will remain in force for those cases until 5 April 1995. It would appear, based on the limited details provided in respect of the person to whom the question refers, that this case may require to be considered by reference to the old rules.
An information leaflet prepared by the Revenue Commissioners, dealing with all aspects of the new residence rules and the transitional provisions, will be provided to the Deputy and the person to whom the question refers, which should help to clarify any queries arising from the changes.