Tax Return on Foreign Salary (Non Dom)?

[Starbuck]

So I'm living and working in Australia since 2010, and I'm contacted last week by the Irish Revenue (via email) asking me to declare all foreign earnings for the last 3 years.
I started receiving an Irish based occupational Pension 3 years ago, I guess that's what triggered their sudden interest.
I pay tax in Australia on my income here.
I'm non resident in Ireland since 2010 and have no assetts or income there, besides the pension.
So should I entertain this request? Why does the Irish Revenue have a claim/interest in income earned overseas by a non-resident?

 

[T McGibney]

So I'm living and working in Australia since 2010, and I'm contacted last week by the Irish Revenue (via email)

Are you sure the request is genuine. Revenue's regular anti-phishing alerts make clear that they don't use email for information requests. You should independently report the request to Revenue.

 

[GabbyTheKing]

Very carefully considering what T.McGibney has said this is my 50 pence. Ok so. You say you are non dom. When did you move to Austrailia in 2010? Odds were you were resident in 2010 and subject to tax on your world wide income(WWI) for 2010 as between 2010 and 2009 you probably spent excess of 280 days in Ireland and more than 30 days 2010. The Exception to WWI being the income of a job carried out wholly in another state per S822 Split year residence relief where the intention was to be non res in 2011 and 2012. Were you resident in Ireland for 3 years or more including 2010 if applicable? If so you were Ordinarily resident in 2011, 2012 and 2013 until you are 3 years non resident. In 2011, 2012 and 2013 you will be subject to tax on WWI with the exception of a job or office wholly carried on outside the state. Therefore you are probably Non Resident, Non ordinarily resident and Non Domicile for 2014 onwards. You tax scope in Ireland at this stage will be "Liable to Irish tax on Irish source income and income from a trade, profession or employment to the extent exercised in Ireland. " The DTA between Aus and Ireland states "Pensions (including government pensions) and annuities paid to a resident of one of the Contracting States shall be taxable only in that State." ie. your pension is only taxable in Aus.

 

[Starbuck]

Hi Folks. Thanks for your helpful responses.
I should have been a bit clearer perhaps - the email was on the ROS/myAccount website which I think is pretty secure. But thanks for the heads up on that.

When did you move to Austrailia in 2010? Odds were you were resident in 2010 and subject to tax on your world wide income(WWI) for 2010 as between 2010 and 2009 you probably spent excess of 280 days in Ireland and more than 30 days 2010.

Gabby, I left in mid May 2010, and yes I was living in Ireland in 2009 for the full year. But I got a balancing statement for year 2010 after I left. I think I'm all paid up for that year.

The Exception to WWI being the income of a job carried out wholly in another state per S822 Split year residence relief where the intention was to be non res in 2011 and 2012.

I went on an extended holiday around Australia for the rest of 2010 actually, so had no income for that year (after May).

Were you resident in Ireland for 3 years or more including 2010 if applicable? If so you were Ordinarily resident in 2011, 2012 and 2013 until you are 3 years non resident.

Do you mean AFTER 2010?
I remained abroad since May 2010 and have only been back in Ireland once for about a week (holiday).

You tax scope in Ireland at this stage will be "Liable to Irish tax on Irish source income and income from a trade, profession or employment to the extent exercised in Ireland.

Don't have any of the above - only the Occupational Pension which kicked in on August 2014.

The DTA between Aus and Ireland states "Pensions (including government pensions) and annuities paid to a resident of one of the Contracting States shall be taxable only in that State." ie. your pension is only taxable in Aus.

That's what I thought. So why the request now for a declaration of WWI?
The request is asking for details of WWI for years 2014/2015/2016 only, and says this is required to "deal with your request for a P21 Balancing Statement for years 2014/2015/2016".
I didn't ask for a Balancing Statement! They contacted me (by post actually) and told me to file returns on the ROS website for 2014-2016, which I did quite quickly because I had no income to report in Ireland, except the pension.
Now they are making this additional request for WWI and I don't see why they want that, or are even entitled to it.

I am all legally paid up out here too, so I have nothing to hide, but I just don't need the hassle of going digging out records to file in Ireland when they probably have no further interest in me (beyond the pension, which is as you say taxed in Aus).
I have Certificates of Tax Residency in Aus for every year since May 2010.

 

[T McGibney]

I should have been a bit clearer perhaps - the email was on the ROS/myAccount website which I think is pretty secure. But thanks for the heads up on that.

Then it wasn't an email.

Why do you have still a ROS account, 7 years since you left Ireland?

 

[Starbuck]

Why indeed.
It was set up back in about 2007 when I lived in Ireland. I don't recall using it to be honest.
Last week I got a letter from Revenue (by post) forwarded from my old address in Australia. It was termed a 'Warning' letter, saying that I had not filed a tax return for 2016 in spite of 'repeated warnings' (which I never received), and instructing me to go immediately to the Revenues 'myAccount' website and file it.
I had never heard of the 'myAccount' website before and had to register to use it. It appears to be a new adjunct of the ROS website. It's actually far more user friendly. It showed that I hadn't filed anything for 2014/15/16 (completely forgot), so I quickly did all three there. I actually had received P60's for those three years! The only income was the pension.
So it seems I'll have to continue filing returns for the rest of my life, even though I'll probably not go back to Ireland again. The website will help, I guess!

 

[T McGibney]

Sounds like you just need to deregister your income tax registration. Write back to them explaining the above and they'll probably sort it for you.

 

[Starbuck]

I've written to them, no reply as yet.
Is it really that simple to 'escape'?
After all, I do have income in Ireland, even though non resident.....

 

[Starbuck]

I got my reply - the Inspector says that because I'm non-Resident and paying Tax abroad I do not need to file an annual tax return!
So the 'Warning Letter' was inappropriate and unnecessary. As was the further demand for report of Worldwide Income.
I'm actually a bit surprised that they went as far as saying I don't have to (ever) file a return, but I'm very happy to be told so officially all the same.

 

[torblednam]

I got my reply - the Inspector says that because I'm non-Resident and paying Tax abroad I do not need to file an annual tax return!
So the 'Warning Letter' was inappropriate and unnecessary. As was the further demand for report of Worldwide Income.
I'm actually a bit surprised that they went as far as saying I don't have to (ever) file a return, but I'm very happy to be told so officially all the same.

The warning letter wasn't inappropriate, whatever about scary.

It's a self assessment tax system and it's your responsibility to deal correctly with your affairs.

It's up to you to know whether you need to file a return for a particular year of assessment - Revenue doesn't know all of your circumstances and income sources until AFTER you file a return. All they knew, at time of writing to you, is that you had a live income tax registration indicating you ought to be filing a return. Consequently, you received the same warnings etc that anyone, with a filing obligation they haven't complied with, gets.

 

[Starbuck]

So how do I 'unregister'?

 

[torblednam]

The letter you got would imply they've deregistered you but you should correspond with them to confirm that they have, otherwise you may be in the same boat again in 12 months time.

 

[Starbuck]

Will do, thanks.