I propose to take Questions Nos. 69 to 71, inclusive, together.
As a general rule, based on long-standing case law, companies are resident in Ireland for tax purposes if they are managed and controlled in Ireland. Section 23A of the Taxes Consolidation Act 1997 supplements this general rule and provides that certain companies incorporated in the State are to be regarded as being resident in the State for tax purposes.
A company incorporated in the State is not regarded as tax-resident here where - either the company or a related company is carrying on a trade in the State and either — the company is ultimately controlled in a tax treaty country or in an EU Member State or the company or a related company is quoted on a recognised stock exchange in the EU or in a tax treaty country, or - the company is treated under a tax treaty as not resident in the State.
Companies that are tax resident in Ireland are liable to tax on their worldwide income with credit given for foreign taxes paid on income earned abroad. Companies that are not tax resident in Ireland and which do not carry on a trade in Ireland have no liability to Irish corporation tax and have no obligation to file an Irish corporation tax return or to identify the country in which they are resident for tax purposes.
Non-resident companies that carry out business activities in Ireland through an Irish branch are not exempt from or outside the scope of corporation tax. Such companies are liable to corporation tax on such proportion of their profits as are attributable to business activities carried on through the Irish branch. These companies are obliged to file a corporation tax return but only in respect of their Irish branch operations. The corporation tax return requires the non-resident company to tick a box on the return where the company in question is non-resident but has an Irish branch. There is no requirement for such a company to identify its country of residence for tax purposes on its corporation tax return. There is also no requirement for such non-resident companies that have an Irish branch to report their non-Irish branch profits to Irish Revenue as such profits are not, as a matter of law, subject to Irish corporation tax.
I am informed by the Revenue Commissioners that there is no requirement in Irish tax law for a company to claim the status of Irish registered non-resident company. While there is no requirement for a company to claim Irish registered non-resident status, the Revenue Commissioners as part of their normal compliance activity in the area of corporation tax, would seek confirmation from a company as to how it is structured and would verify that all relevant corporation tax rules have been correctly applied.