I propose to answer Questions Nos. 110 and 180 together.
I am informed by the Revenue Commissioners that 14 persons have submitted Domicile Levy returns for the tax year 2011. These persons paid a total of €2,319,768 in domicile levy for that tax year. The year 2011 is the latest year for which figures are available. Domicile Levy returns for the year 2011 were due by 31 October 2012 or 15 November 2012 (for ROS electronic filers). This represents an increase of €674,439 in the total amount of levy paid and four to the number of persons who have paid the levy since figures were last provided to the House on foot of Parliamentary Question 51696 of 2012, from Deputy Nash,
regarding the Domicile Levy on 21 November 2012. Based on figures available to that date in 2012, ten persons had submitted returns declaring a liability in respect of the Domicile Levy for the tax year 2011 and had paid a total of €1,645,329.
The Revenue Commissioners are currently undertaking a compliance programme on the Domicile Levy. Inquiries are being made in a number of cases where a Domicile Levy return has not been filed and the person concerned has been identified by Revenue as having a possible requirement to file such a return. Where Revenue identifies a liability to the Domicile Levy that has not been paid, the full levy, interest and the appropriate penalty will be sought. Initial Domicile Levy inquiries have issued to 33 persons. This number should increase as the programme proceeds.
As the Domicile Levy is a self-assessment tax, with the onus on the taxpayer to declare their liability, it is not possible for Revenue to provide any estimate of the total domicile levy yield if all persons liable to pay the levy were to pay in full. However, following finalisation of the current compliance programme and depending on the level of non-compliance uncovered, it may be possible for Revenue to provide additional information and/or estimates on the level of compliance with the levy.
I am also informed by the Revenue Commissioners that 13,093 persons filed income tax returns for 2011 and indicated they were non-resident for income tax purposes for that year. Again, 2011 is the most recent year in respect of which this information is available.
The circumstances of individuals who are non-resident for tax purposes but who file Irish tax returns can vary widely. They include, for example:
- Irish nationals who have moved abroad for work reasons but who retain their home here (their tax return is generally only in respect of rental income on their Irish home);
- foreign nationals who never resided here but who have investments (including property) here;
- foreign nationals who worked here for a period and who may have acquired Irish tax residence for that period (for example, individuals who worked here on a temporary assignment) may retain an Irish tax liability, after ceasing to be resident, in respect of investments made in Ireland during their period of residence.
Individuals who leave the State are not required to declare their reasons for leaving, on a tax return or any other document. However, it is likely that a high proportion of non-residents who file Irish tax returns are or have become non-resident for reasons unrelated to taxation.
