Tax

Irish Revenue Tightens Up Rules for Tax Exiles

Christopher Owen 21 January 2008

Irish Revenue Tightens Up Rules for Tax Exiles

There are 19 high net worth individuals who are Irish-domiciled residents, but who are legally non-resident for tax purposes, and 3,050 people who registered as non-resident for tax purposes in 2005, according to figures released by the Department of Finance. The figures relate to the first year that the tax authority was able to discover the number of Irish tax exiles, who can spend up to 183 days a year in the state - or 280 days in any two-year period - without paying tax. High net worth individuals are defined as those with assets of over €50 million ($73 million). As a result, the Irish Business Post said the Irish Revenue has stepped up its efforts to ensure that tax exiles do not spend more than 183 days a year in Ireland. Flight logs and a detailed diary of their daily whereabouts must be handed to Revenue officials in the event of an audit. Tax exiles may also be required to produce credit card and bank statements, as well as their passport. Ireland is now in advanced negotiations for tax treaties with a number of low tax economies. Treaties are being negotiated with Argentina, Egypt, Kuwait, Malta, Morocco, Singapore, Tunisia, Turkey, Ukraine and Vietnam. There are existing treaties with Cyprus, France and Italy. The Irish Revenue is also negotiating with a number of offshore tax havens to establish tax information exchange agreements. Discussions are ongoing with the Isle of Man, Jersey, Guernsey, the Cayman Islands and the British Virgin Islands.

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