Dáil Éireann Debate, Tuesday - 27 November 2018
148. Deputy Eamon Scanlon asked the Minister for Finance further to Parliamentary Question No. 59 of 19 September 2018, the way in which tax (details supplied) that has been deducted in the UK will be reflected here; and if he will make a statement on the matter. [48863/18]
View answerI am advised by Revenue that in the case at hand, it appears from the information provided so far that tax may have been deducted from this taxpayer’s pension in the United Kingdom in contravention of the Double Taxation Convention (“the Convention”) between Ireland and the United Kingdom of 1976.
Double Taxation Conventions allocate taxing rights between Contracting States. Articles 17 (Pensions) and 18(2) (Government Service) of the Convention gave Ireland an exclusive taxing right over this taxpayer’s pension. As a consequence, the UK did not have a right to tax this pension and if it did so, it was in contravention of the Convention. Ireland had the right to tax the pension without having to provide relief (i.e. give a credit) for tax deducted in the United Kingdom against the Convention.
If the taxpayer considers that Revenue’s or Her Majesty's Revenue and Customs’ actions have resulted in taxation not in accordance with the Convention she may initiate a Mutual Agreement Procedure under Article 24 of the Convention. Both Competent Authorities will endeavour to solve the case by mutual agreement with a view to avoid the double taxation that arose from the incorrect application of the Convention.
I am advised that Revenue will contact shortly the Deputy’s office to provide information on how to initiate a Mutual Agreement Procedure and the contact details of Revenue’s Competent Authorities.
