Living in Australia but with property in Ireland - tax implications

bboyertree

Registered User
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1
Hi all,
We moved from Ireland to Australia in Oct 2008. Although we had Australian permanent residency before we moved we held onto our house in Ireland in case we didn't like life in Oz and wanted to move back. Then the great recession hit and we went deep into negative equity. We felt unable to sell the Irish house as we would have had to pay the bank more money than we could afford at the time. We then made the decision not to declare our Irish property on our first Australian tax return. It's a decision we have regretted since as it makes it more difficult to regularise our situation now that we have decided we want to stay in Australia.

My sister was living in the house in Ireland and though she was paying some rent, it was not nearly enough to cover the Irish mortgage. We have been sending money back to cover the remainder. We have not declared we are receiving rent in Ireland. I expect we have made a loss on the Irish house and believe we could have been claiming that loss against our Australian incomes for the last few years through 'negative gearing'.

We would now like to regularise our situation with tax agencies in both Ireland and Australia. Specifically I would like to know
1) What the likely penalties would be for withholding information from tax agencies in both Ireland and Australia
2) If anyone on here has experienced a similar situation and can offer advice
3) If anyone can recommend a professional service in either Ireland or Australia or both that we could work with to put our affairs in order.

Thanks
 
Well it would be very difficult to get advice on AAM on the Austrialian tax system. But she is in a whole heap of trouble in Ireland. Owes thousands in NPPR, for a starter.

She probably should have stopped paying the mortgage and let the bank sell the property.
 
Hi all,
We moved from Ireland to Australia in Oct 2008. Although we had Australian permanent residency before we moved we held onto our house in Ireland in case we didn't like life in Oz and wanted to move back. Then the great recession hit and we went deep into negative equity. We felt unable to sell the Irish house as we would have had to pay the bank more money than we could afford at the time. We then made the decision not to declare our Irish property on our first Australian tax return. It's a decision we have regretted since as it makes it more difficult to regularise our situation now that we have decided we want to stay in Australia.

My sister was living in the house in Ireland and though she was paying some rent, it was not nearly enough to cover the Irish mortgage. We have been sending money back to cover the remainder. We have not declared we are receiving rent in Ireland. I expect we have made a loss on the Irish house and believe we could have been claiming that loss against our Australian incomes for the last few years through 'negative gearing'.

We would now like to regularise our situation with tax agencies in both Ireland and Australia. Specifically I would like to know
1) What the likely penalties would be for withholding information from tax agencies in both Ireland and Australia
2) If anyone on here has experienced a similar situation and can offer advice
3) If anyone can recommend a professional service in either Ireland or Australia or both that we could work with to put our affairs in order.

Thanks

I recommend:

It is worth getting in touch. They are registered accountants in both Australia and Ireland. All cases are different, so your better off going to the expert and getting the right answers.
 
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