Dáil Éireann Debate, Tuesday - 23 November 2004
138 Mr. Costello asked the Minister for Finance if he intends to make changes to the legislative provisions regarding residency abroad for tax purposes, particularly in regard to the so-called Cinderella clause, whereby if a person has left the country by midnight, it does not count as a day of residence; and if he will make a statement on the matter. [29846/04]
View answerAs the Deputies may be aware, the residence rules for tax purposes were last updated in the 1994 Finance Act by the then Government following a comprehensive review of the matter by the Revenue Commissioners and my Department. Prior to this the rules were based on a mixture of statutory provisions, old case law and Revenue administrative practice, which was an unsatisfactory situation. The new residence rules set out in the 1994 Finance Act both simplified and clarified the whole area and were generally welcomed. These rules provide inter alia that an individual is deemed to be present in the State for a day if the individual is present in the State at the end of the day. This is in line with the Revenue administrative practice prior to the Finance Act 1994 which was based on the number of nights spent in the State.
As Deputies are aware, it is not the practice to comment in the lead up to the annual budget and Finance Bill on the intention or otherwise to make budget or legislative changes.
