Dáil Éireann debate -
Thursday, 9 May 1996

Vol. 465 No. 2

Written Answers. - Cross-Border Tax Refunds.

Cecilia Keaveney

Question:

84 Cecilia Keaveney asked the Minister for Finance the number of persons who work in the Republic of Ireland but live in Northern Ireland; the cost of repayments to these persons in respect of cross-Border tax refunds; and if he will make a statement on the matter. [9355/96]

Minister for Finance (Mr. Quinn)

I regret that it is not possible for the Revenue Commissioners to ascertain the precise number of persons who work in the Republic of Ireland but live in Northern Ireland. Such information is not readily available from the data kept by the Revenue Commissioners. However, a rough study of the numbers involved was carried out for the tax period 1992-93 and an approximate figure of 2,500 was arrived at.

As regards the second part of the Deputy's question — what is the cost of tax refunds to such cross-Border workers — it is not clear what the Deputy is referring to. Typically, tax refunds would not arise in such cases.

For the Deputy's information, the taxation of cross-Border employment is governed by the Irish and UK domestic tax laws and by the Ireland/UK Double Taxation Convention. In the cases to which the Deputy is referring, an individual residing in Northern Ireland and working for an employer in the Republic would be taxable in the Republic in the same manner as would an Irish resident employee. The Northern Ireland resident would, however, also be taxable on such earnings in Northern Ireland, but a credit would be allowed against that tax for the tax paid in the Republic. As the tax rates in the Republic are invariably higher at present than in Northern Ireland, the credit allowed for the tax in the Republic would generally wipe out any further taxation of the income in Northern Ireland. There would not, however, be any question of a refund of tax paid in the Republic in such cases.

I hope the above clarifies the position and adequately deals with the Deputy's question.