Part 18C of the Taxes Consolidation Act 1997, as inserted by Finance Act 2010 and amended by subsequent Finance Acts, which concerns the Domicile Levy, makes no reference to the tax residence of the individuals to which the legislation applies. The levy therefore applies to individuals both resident and non-resident who meet the criteria set out in the legislation. It is important to note that an Irish domiciled individual, resident in Ireland, who is otherwise liable to the Domicile Levy for a tax year, and who pays Irish Income Tax for that year, is entitled to credit the Irish Income Tax paid against her/his liability to the Domicile Levy. This means that such a person who pays €200,000 or more in Irish Income Tax for a tax year will have no liability to Domicile Levy for that year. However, to the extent that such a liable person pays less than €200,000 in Irish income tax for a tax year he or she will be liable to the Domicile Levy whether a resident of Ireland or not, and will also be entitled to a credit for whatever Irish Income Tax s/he paid for that year.
This treatment was always intended as it ensures that such high wealth individuals with a substantial connection to Ireland, whether they are Irish tax resident or not, make a tax contribution to this country in a year of at least €200,000, either by way of Domicile Levy or Income Tax.
I am informed by the Revenue Commissioners that the number of persons who filed a Domicile Levy return for 2010, paid a Domicile Levy liability in relation to 2010 and who filed an Income Tax return showing that they were resident in Ireland in that year was four.
The number of persons who filed a domicile levy return for 2011, paid a Domicile Levy liability in relation to 2011 and who filed an Income Tax return showing that they were resident in Ireland in that year was two.