Undeclared Foreign Property - The new Bogus Non Resident a/c?

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3littlefish

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Foreign Property - The new Bogus Non Resident a/c?

Ireland is still awash with money at the moment. A massive amount of Irish residents are still flocking to buy land & property abroad.


In the years to come, are we likely to see a property version of the Bogus Non Resident Off Shore accounts scandal?
 
Re: Foreign Property - The new Bogus Non Resident a/c?

3littlefish said:
If property or land was purchased abroad without the knowledge of the Revenue does it always have to stay that way?
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Who knows. More cooperation between the tax authorities across the EU/euro zone in the future might not be that unlikely and then such evasion could come to light. Revenue have all the time in the world to catch up with past indiscretions...
 
Re: Foreign Property - The new Bogus Non Resident a/c?

3littlefish said:
In the years to come, are we likely to see a property version of the Bogus Non Resident Off Shore accounts scandal?
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Without doubt, if people are purchasing them by means of undeclared funds...
 
Re: Foreign Property - The new Bogus Non Resident a/c?

Or not declaring rental income or capital gains?
 
Re: Foreign Property - The new Bogus Non Resident a/c?

Newby said:
Without doubt, if people are purchasing them by means of undeclared funds...
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I doubt people (excluding drug money etc) are buying property overseas with undeclared funds.
But I'm sure quite a few have bought property and are not declaring rental income. Crazy really because in most cases it's small amounts which become rather large when you add interest and penalties...
 
Re: Foreign Property - The new Bogus Non Resident a/c?

I suspect that it may be more to do with CGT evasion.
 
Re: Foreign Property - The new Bogus Non Resident a/c?

KalEl said:
I doubt people (excluding drug money etc) are buying property overseas with undeclared funds.
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I wouldn't be surprised if there are a lot of individuals who have undeclared funds. Undeclared funds not only include proceeds from crime but might be undeclared inheritances of overseas properties from family members, bogus non-resident accounts that were used to purchase overseas property...
 
Re: Foreign Property - The new Bogus Non Resident a/c?

ClubMan said:
Or not declaring rental income or capital gains?
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Yup, probably a more common reason alright... though the undeclared funds type of investigation might yield more cash to the Revenue.
 
Re: Foreign Property - The new Bogus Non Resident a/c?



I would have thought that this could be easily tracked within the EU
 
Re: Foreign Property - The new Bogus Non Resident a/c?


Could be, but less likely since CGT was halved.
Let's face it, 20% is a fair share...40% is not.
 
Re: Foreign Property - The new Bogus Non Resident a/c?

KalEl said:
Could be, but less likely since CGT was halved.
Let's face it, 20% is a fair share...40% is not.
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So if i don't think that 41% is a fair share to be paying the governement i shouldn't declare my income?
In any event declaring a gain now that was liable to a rate of 40% in the past is liable to a gain at 40% (as that was the rate that applied at the time).
 
Re: Foreign Property - The new Bogus Non Resident a/c?


That's not what I said.
The high taxation regime of the 70's and 80's contributed to the corruption and tax evasion of the period. Having a CGT rate of 40% or a PAYE rate of 70% practically encourages people to fiddle their taxes and not declare assets.
My point was that a CGT rate of 20% is fair and hardly worth dodging before you even consider your moral/social responsibilities.
 
Re: Foreign Property - The new Bogus Non Resident a/c?

KalEl said:
The high taxation regime of the 70's and 80's contributed to the corruption and tax evasion of the period.
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And vice versa I would say! A bit of chicken and egg involved.
 
Well the easiest route to avoid the Revenue finding out on a foreign property is to purchase in a country where we do not have a double tax agreement with.
Now if you do purchase in such a country, its a killer to actually declear because you would most likely be subject to double taxation on income and gains which can be a lot to bear, don't forget you could be making taxable profits but not positive cashflow so having to pay tax twice is a bit bitter when you don't have the readies
 
slave1 said:
Well the easiest route to avoid the Revenue finding out on a foreign property is to purchase in a country where we do not have a double tax agreement with.
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But surely any future DTA could have an impact?
don't forget you could be making taxable profits but not positive cashflow so having to pay tax twice is a bit bitter when you don't have the readies
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That applies even buying in Ireland in spite of seemingly many people assuming that the following formula applies: mortgage repayments > rental income = no tax!
 
Re: Foreign Property - The new Bogus Non Resident a/c?

ClubMan said:
And vice versa I would say! A bit of chicken and egg involved.
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Fair point...though I could imagine at least listening to somebody justifying dodging a 70% rate of tax. Dodging a rate of 20% futile amongst other things.
 
Re: Foreign Property - The new Bogus Non Resident a/c?

ClubMan said:
A 70% top rate of tax does not necessarily mean that you actually pay that amount on gross income. Just as a 42% (2006) top rate does not mean that you actually pay that amount on gross income!

What was your effective tax/PRSI take in 2006?
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Agreed but in the 80's people on middle incomes were paying 70% on a large proportion of their income. I'm just saying very high rates of tax encourage tax evasion...so obviously the converse is true.
 
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