Tax News

Introduction

Finance Act 2012 introduced a number of important changes to the stamp duty filing regime.

The changes apply to all instruments or deeds executed on or after 7^th July 2012.

Key Changes in Stamp Duty Filing Regime

Where the execution date of an instrument or deed is on or after 7^th July 2012:

1. Adjudication of the stamp duty liability will not be necessary or possible.
2. A late filing surcharge (5% or 10%) will apply where returns are filed late.
3. There are new criteria for making a valid “expression of doubt.”

What these changes mean

1. Instruments executed on or after 7^th July 2012 will no longer be subject to adjudication.
2. Stamp duty must be self-assessed in all such cases.
3. Where unclear about the stamp duty treatment of a particular matter in the return then there is an option to make “an expression of doubt” on the ROS form.
4. The criteria for making a valid expression of doubt are stricter.
5. Revenue can reject an expression of doubt as not being genuine.
6. If Revenue believes the expression of doubt is not genuine, they will issue a notice of rejection outlining the reasons.
7. To obtain a Stamp Certificate the filer must immediately lodge an amended return and pay the related liability.
8. The taxpayer will have the right to appeal to the Appeals Commissioner.
9. An expression of doubt will not be accepted where the Stamp Duty Return is filed late.
10. It is also possible to address technical tax queries to Revenue’s Technical Service (RTS).
11. Late Returns will be subject to a surcharge.
12. Revenue will continue to accept returns as being filed on time where filed up to forty four days after execution. (This is a Revenue Concession.)
13. A 5% or 10% surcharge will apply depending on the lateness of the Return. Further information is available on [http://www.revenue.ie/en/tax/stamp-duty/index.html].

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Introduction

Your residency affects your tax treatment in Ireland.

As an Irish resident, ordinarily resident and Irish domiciled individual you will be taxed on your worldwide income wherever it arises.

You will be taxed on all Irish and foreign source income in full and where possible you will be entitled to a tax credit for any foreign tax paid on foreign source income.

Residence

You will be considered to be Irish resident if you are present in the state for:

a) 183 days during the tax year in question or

b) 280 days or more over a period of two consecutive tax years.

Notwithstanding b), if you are present in Ireland for 30 days or less in a tax year you will not be treated as resident for that year unless you elect to be resident.

If you are not tax resident in the year of arrival under the above rules, you may elect to be tax resident for the year of arrival.

If you have any queries relating to whether or not you should elect to become Irish resident, please contact us on 01 872 8561

Ordinarily Resident

You will be considered ordinarily resident if you have been resident in the state for the previous three consecutive years.

Regardless of whether or not you are actually resident in the state in the fourth year, you will be considered ordinarily resident for the fourth year.

If you leave Ireland, you will cease to be ordinarily resident when you have been non resident for three consecutive years. You will not be considered to be ordinarily resident from the fourth year.

Domicile

Domicile is a general legal concept.

It is relevant to you in relation to how certain foreign source income will be taxed in Ireland.

Under Irish law, every person acquires a domicile of origin at birth. In most cases this is the father’s domicile, however, in situations where the parents are unmarried or the father has died prior to the individual’s birth, the domicile of the mother is taken.

Your domicile can change if you acquire a domicile of choice.

For more information, please contact us on 01 872 8561

Tax Treatment

As a non resident, but ordinarily resident and Irish domiciled individual you will be taxed on all Irish and foreign sourced income in full.

The following income is exempt:

a) Income from a trade or profession, all duties of which are exercised outside Ireland.

b) Income from an office or employment, all duties of which are performed outside the state.

c) Foreign income providing it does not exceed a threshold amount of €3,810 in a tax year.

As a non resident, non Irish domiciled but ordinarily resident individual, you will be taxed on all Irish source income in full and foreign source income to the extent that it has been remitted into Ireland.

Again, the following income is exempt:

a) Income from a trade or profession, all duties of which are exercised outside Ireland.

b) Income from an office or employment, all duties of which are performed outside the state.

c) Foreign income providing it does not exceed a threshold amount of €3,810 in a tax year.

As non resident, non domiciled and non ordinarily resident, you will be taxed on Irish source income in full and on foreign source income in respect of a trade, profession, employment or office where the duties are exercised in Ireland.

As an Irish resident and ordinarily resident but non Irish domiciled individual, you will be taxed on Irish source income in full and on remittances of foreign source income.

Should you have any queries in relation to residency, ordinary residency or domicile, we would be delighted to discuss them with you.

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.