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Dáil Éireann díospóireacht -
Thursday, 13 Nov 2003

Vol. 574 No. 3

Written Answers. - Tax Incentives.

Bernard J. Durkan

Ceist:

131 Mr. Durkan asked the Minister for Finance the taxation implications for an Irish born overseas resident wishing to return here, having lived abroad for 20 years; and if he will make a statement on the matter. [26941/03]

It is difficult to give a precise answer to this question as it is not clear if the individual in question has had Irish source income or has owned Irish assets during his or her 20 years abroad. However, some general points can be made as follows. An individual who is resident, ordinarily resident and Irish domiciled is taxable in full on all Irish and foreign sourced income. An individual who is resident and ordinarily resident but not Irish domiciled is taxable on Irish sourced income in full and taxable on remittances of foreign sourced income. An individual who is resident and domiciled but not ordinarily resident is taxable on Irish sourced income in full and taxable on remittances of foreign sourced income. A liability to Irish capital gains tax on gains from the disposals of world-wide assets will arise when an Irish domiciled individual becomes Irish resident or ordinarily resident. An individual who is resident or ordinarily resident but not Irish domiciled is liable to Irish capital gains tax on any gains arising from the disposal of Irish and UK assets and taxable on remittances of gains arising from the disposal of other foreign assets.

As regards the term ‘ordinarily resident', the individual will become Irish ordinarily resident for tax purposes if he-she remains Irish resident for the three consecutive years after his-her return. As regards the term 'domicile', this is a concept of general law. It may be broadly interpreted as meaning residence in a particular country with the intention of residing permanently in that country. Every individual acquires a domicile of origin at birth. For example, an Irish born individual who returns to live in Ireland, having lived abroad for a number of years, will be regarded as having revived his/her Irish domicile of origin.

If the Deputy wishes to obtain further information on the matter with regards to a specific case, it is suggested that he either write to me with the details or raise the matter directly with the Revenue Commissioners.

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