Tax exile 183-day rule?

[MelF]

Just interested in how this tax exile thing works after hearing about the Century Homes guy who resigned yesterday.
It seems he legally evaded paying tax by spending 183 days out of the state and in his case he went to Italy. But what's the benefit, as don't we have a double taxation agreement with Italy so wouldn't he have had to pay tax there in any case? And as an Irish resident aren't you obliged to pay tax here no matter what?

 

[Cayne]

Just to clarify it was his wife who availed of the loop hole. The shares were sold to her and thereby avoided nearly €5 million in tax.

More info in todays indo:

http://www.independent.ie/national-...st-in-836447m-tax-loophole-storm-1684877.html

 

[MelF]

OK, but how did she not have to pay tax in Italy? I understand the loophole has now been closed but am curious as to how it existed in the first place.

 

[Chocks away]

OK, but how did she not have to pay tax in Italy? I understand the loophole has now been closed but am curious as to how it existed in the first place.

Ineptitude of the lawmakers and Revenue?

 

[Setanta12]

There was always an exemption from CGT where a husband passed assets to his wife these assets could be a gift of money or a car or shares or a share in whats to become the family home etc.

There was also an exemption for non-residents from GCT - if someone moves abroad and sells assets a year or so later, e.g. immgrants to the States buy an apartment then sell - how would you tax and then collect ?

 

[jhegarty]

evaded paying tax

The word in this case is avoided , not evaded.

 

[QED]

This should be just a very small side-show to the much more serious problems in our Banks, Government, Regulators and Economy.

Is there really that much public anger towards this man who built his own fortune (albeit grant-aided) and legally avoided paying tax? Who would not have done the same if they were fortunate enough to be in Mr. McCaughey's position?

I think that certain media outlets are giving this story much more attention than it deseves.

 

[MelF]

The word in this case is avoided , not evaded.

Good spot yes, sorry! I too feel its been overblown in the media, the guy avoided a huge tax bill fair and square, but the way things are reported you'd swear he'd gotten away with murder!

If this Cinderella loophole as I've heard it described before is now abolished does this mean that Denis O'Brien etc has to pay tax here now or is he a non-resident altogether?