Income Tax : Irish Revenue or HMRC ?

I

Ichabod

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I operate a small bar and restaurant in Fermanagh as a sole trader. I live in Longford and meet all residency rules. I am having great difficulty in establishing in which jurisdiction I am liable to pay income tax.
Two separate enquiries to the Revenue Commissioners and I have been told that I am liable to pay in the 26 counties. Yet I have a letter from HMRC telling me I am liable in the North.
I would be eternally grateful if someone could give me a definitive answer on this
 
International tax is not my area but If you are resident and domiciled in Ireland then you are taxable on your worldwide income.

As you have a permanent establishment in Northern Ireland you will be taxed there first. You will have to rely on the Double Tax Treaty to get a credit for the tax suffered.
 
Joe_90 said:
International tax is not my area but If you are resident and domiciled in Ireland then you are taxable on your worldwide income.

As you have a permanent establishment in Northern Ireland you will be taxed there first. You will have to rely on the Double Tax Treaty to get a credit for the tax suffered.
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Thanks, Joe. That as my understanding until the Revenue officials ( different sections ) told me differently. I was told the trans-border worker relief did not apply as I was a sole trader and the Double Tax Treaty was not even mentioned. It was my original understanding that I would pay my initial business tax to HMRC then make a return to Revenue Commissioners including tax liabilities from the UK and receive credit for same.
These two " officials " here have managed to confuse the issue completely. Rather than submitting my own self-assessment forms, it looks like I will have go to the expense of hiring an accountant for at least the initial process.
Thanks for your quick response.
 
Yes, you will need an accountant - one versed in both jurisdictions' tax codes. (I've said it elsewhere but try to find one with AITI / CTA if looking here in the Republic or CIOT / CTA if in the North, there is another UK tax body to look out for, but the name escapes me right now)

I may be wrong in the following but confident enough to put it out there to be corrected - > Essentially you own a trade in the South but have a branch in the North. Just so happens this Branch contains 100% of all business assets/liabilities of the trade.

I can't recall provisions of the DTA, but v v v likely it is a credit, as opposed to an exemption, but certainly not a deduction as the case with other DTAs.
 
Setanta12 said:
Yes, you will need an accountant - one versed in both jurisdictions' tax codes. (I've said it elsewhere but try to find one with AITI / CTA if looking here in the Republic or CIOT / CTA if in the North, there is another UK tax body to look out for, but the name escapes me right now)

I may be wrong in the following but confident enough to put it out there to be corrected - > Essentially you own a trade in the South but have a branch in the North. Just so happens this Branch contains 100% of all business assets/liabilities of the trade.

I can't recall provisions of the DTA, but v v v likely it is a credit, as opposed to an exemption, but certainly not a deduction as the case with other DTAs.
Click to expand...

Yes, it appears that I will have to go this route. What really appalls me is the difficulty in getting accurate information and assistance from the Revenue Commissioners. Not for the first time have I received inaccurate and misleading information from lower echelon staff, on other matters.
Anyway, thank you for your response.
 
Revenue are in the tax collection business. They are not in the advice business. Whenever it suits them, they routinely disclaim information dispensed by their staff and sometimes information in their own publications. Caveat emptor.
 
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