NOT PAYING TAX ??? U.K. construction workers in ireland

R

richie61

Guest
I hear that some U K construction workers in ireland are not paying any tax, not a cent (english or irish tax) They are working for big name construction firms in ireland (via sub contractors).

Is this true??????

Or myth
 
If you have any evidence and are not prepared to report the matter to revenue. Perhaps you only have a suspicion then I suggest you contact the Trade Unions who are very pro active in this area. SIPTU and UCATT might be worth a call.

SIPTU
[broken link removed]

Similar issues were discussed here some time back:


ajapale
 
I always feel uncomfortable about these sort of discussions about "foreigners not paying their way". Some of them are just racist nonsense.

Why would you go to a Union, rather than the Revenue, if you suspect tax evasion? You don't have to give your personal details to them.
 
Hi Noel,

I share your unease about these types of discussions. That is why I moved it from the tax forum to here.

I only suggested reporting the matter to the contstruction trade unions as an alternative. Some people have a pathological fear about revenue (as do some people about trade unions!) and are slow to contact them. Another alternative might be to contact the Construction Industry Federation.

ajapale
 
Tax

This is happening wholesale and is legit from an irish revenue point of view. A lad worked with me from the states and he was paid into an account in Jersey. He paid tax on whatever he transferred from his jersey account into his irish account, which was ...nothing as he was living off savings etc. According to himself he just withdrew the cash and went to the states with it, himself and his partner. He was working for about three years here.
 
Re: Tax

If this scenario relates to the building industry, how is Relevant Contracts Tax (RCT) dealt with? A contractor cannot pay anyone for building work of any description (unless they have a C2) without stopping 35% tax at source. This applies whether the money ends up in Kanturk, Jersey or Timbuktoo. Foreign contractors may be able to claim refunds of part or all of this tax depending on their own situation but they must follow procedures to do so.

Btw, it is extremely difficult for anyone to half-successfully evade RCT unless they construct an elaborate scam or else go around with literally briefcases full of cash in which case they would probably end up with a joint Revenue/CAB investigation into false accounting/money laundering/criminality.
 
Re: Tax

i also knew someone who avoided paying any tax and he claimed that he was able to do this legitimately using a particular provision in the irish tax system which was designed to help foreign companies setting up here. the idea was to allow foreign (especially american, i think) executives and managers to move to ireland while still in the employ of the parent company for a short period (couple of years) but only pay irish tax on the "irish portion" of their income - i.e. their spending in ireland. of course this person (an australian who had been working in the uk) ensured that the "irish portion" of his income was very small so he avoided the tax net here while the residency laws meant he had no liabilities in the uk or australia. to be honest this could be a load of rubbish but i doubt the major multi-national which employed him as a contractor would have been happy if he was committing out and out tax fraud.
 
Re: Tax

Hopefully these sorts of scenarios are also being looked at by the Government, following on from comments made by the Taoiseach at budget time that all such tax loopholes are being reviewed.
 
Re: Tax

From what I heard the construction firm was sourcing it labour from an english company , who employ english and irish construction workers, this is how they avoid the 35%tax you mention
 
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