Vol. 472 No. 2
104 Cecilia Keaveney asked the Minister for Finance the steps, if any, which will be taken to deal with the dual taxation issue for Border workers in the event of the British taxation rate being lowered in the forthcoming British budget, thereby raising the bill which such workers will face in the incoming tax year; and if he will make a statement on the matter. [22895/96]
Irish residents are taxed here on their world-wide income wherever it arises. The principle of world-wide taxation on the basis of residence is a fundamental principle in our taxation system. Irish residents who are cross-Border workers are therefore liable for Irish tax on their income accruing in Northern Ireland. Under the 1976 Ireland/UK Double Taxation Agreement, cross-Border workers are given credit on their tax liability in the country of residence for tax paid in the country of work, regardless of the rates of taxation in operation in the country of work.
Last year, as the Deputy is well aware, I established an interdepartmental committee to thoroughly investigate the issues involved in the taxation of cross-Border workers. The committee found that the treatment of cross-Border workers for the purpose of Irish income tax is fair and reasonable vis-à-vis other Irish taxpayers. Consequently, the committee felt that there is no justification for any special income tax treatment of these workers as compared to any other category of Irish resident taxpayers.
