bazermc,
Form 11, Question 15: Non-Resident
I should tick this box, as I’m Non-Resident, but write Ordinarily Resident beside it.- YES - REVENUE SHOULD ALTER THIS FORM THIS IS TO ENSURE YOU CAN AVAIL OF SECTION 821 EXEMPTION FROM FOREIGN SOURCE INCOME
(The wording in Section 821 TCA 1997 I downloaded is different, but you probably have access to a more recent ruling.) - THE WORDING IN SECTION 821 HAS NOT CHNAGED SINCE FINANCE ACT 2004 - DOES NO MATTER ANYWAY
Form 11, Question 14: A citizen of Ireland not ordinarily resident in the state
I should leave this box un-ticked. You said on 11/5: “question 14 relates to non ord resident individuals who get a portion of credits based on the irish income over worldwide income.” LEAVE THIS BOX UNTICKED BECAUSE YOU ARE ORDINARILY RESIDENT FOR 2005 TAX YEAR BUT HERE ANOTHER PROBLEM ARISES IN THAT YOU AN AN IRISH CITIZEN AND AS SUCH ARE ENTITLED TO RESTRICTED CREDITS SO ITS NO TO THIS BOX BUT YOU NEED TO BE ABLE TO TELL REVENUE YOU ARE AN IRISH CITIZEN FOR THE PURPOSES OF SECTION 1032(2)(A)
Does ‘citizen’ here mean domiciled? - NO IT DOES NOT BUT IRISH CITIZENSHIP WOULD BE ONE OF THE MARKS OF BEING IRISH DOMICILE
Personal Credit
Much of our discussion concerned a partial Personal Credit, which may apply because of a precedent, but that I should apply for it in a separate letter.
Having re-read the thread, I’m now confused as to which rule applies, and in which years it applies.
Am I correct in the following interpretations?
1. While Non-Resident but Ordinarily Resident (2005 – 2007), tick box 15. Section 821 TCA 1997 applies to me, and is automatically applied – I don’t need to write requesting it.
2. When Non-Resident and not Ordinarily Resident (2008 and later) tick both box 14 and 15. The partial Personal Credit rule will apply (A/B income ratio), and I will need to request it in writing.
I DONT FOLLOW THE ABOVE - SIMPLY THE PERSONAL CREDIT IS YOURS ALTHOUGH RESTRICTED AS SECTION 1032 DOES NOT STATE THAT YOU NEED TO BE ORDINARILY RESIDENT JUST NON RESIDENT AND A CITIZEN
Exemption Limit
Do the same interpretations apply as for Personal Credit above?
NO AS I STATED THE EXEMPTION LIMIT IS AVAILABLE TO NON RESIDENTS ORD RESIDENT DOES NOT MATTER - SECTION 187 DOES NOT CONFIRM THIS BUT A REVENUE PRECEDENT DOES AS PER MY EARILER POST
SSIA
Re your comment on SSIA deposit interest. Because I will still be ordinarily resident in April 2007 (and for 2005 and 2006), I will meet Revenue residency requirements for the SSIA, and so will be able to sign the SSIA4 declaration. YES PROVIDED YOU ARE EITHER RESIDENT OR ORDINARILY RESIDENT AT THE TIME OF MATURITY YOU REMAIN ENITILED TO THE GOV TOP FYI THATS IN SECTION 848i
When I was resident (up to 2004), my accountant said I didn’t need to declare SSIA deposit interest for those years, and so I assume that advice applies to all years during which I meet Revenue’s SSIA residency requirements. DO NOT AGREE WITH THAT ITS TAXABLE INCOME AND NEEDS TO BE DECLARED
When the SSIA matures in 2007, a tax of 23% will apply to growth on the account, so maybe that growth (interest) will have to be declared in the returns for 2007. THE 23% TAX WILL NOT APPPLY TO THE GOVERNMENT TOP-UP I AM ASSUMING THAT REVENUE WHEN PUBLISHING THE FORM 11 FOR 2006 AND 2007 WILL NE INCLUDING A SECTION TO DECLARE SSIA ACCOUNT MATURITIES IN THE SAME WAY THEY DID WHEN IT WAS SET-UP
Tax Collection Agent
NO NOT KEEPING UP WITH THE OTHER THREAD VARYING COMMENTS AND MISSINTERPRETATION HAS FRIED MY BRAIN
You may be keeping up with the other thread, “Non-Resident Landlord - Management Agency refuses to collect Tax”, and so I don’t wish to discuss it too much here. However, you may have read towards the end, how Ham Slicer finally convinced Casiopea (who receives rent directly from tenants) that he is not breaking the law, but that others are.
Likewise, though I receive rent via an estate agent (management company), I am probably not breaking the law either, but my estate agent is:
Where an agent, resident in the State, is appointed by the non-resident landlord to manage the property and the agent is collecting the rents, the rents must be paid gross to the agent. The agent is then chargeable to tax on the rents as Collection Agent for the landlord and is required to submit an annual tax return and account for the tax due under Self Assessment.
Since I already have an agent appointed to manage the property, this agent is responsible for tax collection, and I should not need to appoint another for this purpose. I don’t wish to ask any family member or friend to undertake the responsibility and chore of collecting the tax and submitting a yearly return.
Both Casiopea and I declare and pay the correct tax due on our rental income, and though the process of tax collection is not that required by Revenue, it is others who are not complying with tax law.
If others reading this have comments about Tax Collection Agents, please add you comments to the other thread, “Non-Resident Landlord - Management Agency refuses to collect Tax”, or to a new thread. Thanks.
James