Remittance basis - mixed funds

[taxmatter]

Non-domiciled Irish resident.

Say I have foreign investments and income/gains (interest income/dividends/capital gains but no employment income) are held in the mixed foreign account containing both capital and income. I understand that Irish tax liability arises when a withdrawal is made and funds remitted to Ireland.

From revenue guide:
"Any remittances out of an account containing capital and income are treated as first coming out of the income part of the fund until such income is fully remitted"

I also understand that if withdrawal is made and income/gains are spent abroad (say in country of origin) then there is no Irish tax liability. In that situation if all of the income/gains are spent, and then initial capital is remitted back to Ireland, is there still an irish tax liability?

 

[Marc]

You don’t get to choose which Euro is spent abroad unless the income is physically separated to a different fund

 

[taxmatter]

Ok makes sense.

Can you manually separate the income to a separate account after its paid or does the income has to be paid to a different account at the first place? I am finding it difficult to find banks/brokers who can do it automatically.

 

[Marc]

Has to be done automatically and can’t be done after the fact unfortunately.

Yes, it’s the most common problem we see all the time. It’s taken me over 10 years to figure it all out so don’t be too hard on yourself.

I think it’s too difficult to try and do on your own as there are too many variable which is why it’s our most successful business lines.

Happy to have a chat

 

[business_hero]

Has to be done automatically and can’t be done after the fact unfortunately.

Yes, it’s the most common problem we see all the time. It’s taken me over 10 years to figure it all out so don’t be too hard on yourself.

I think it’s too difficult to try and do on your own as there are too many variable which is why it’s our most successful business lines.

Happy to have a chat

I just left a note via your website. I certainly need advice as well.