Australia for year

[xxx]

My brother went to Australia last year for 12 months (may-may). He worked for about 10 months while over there. He let out his house here and was also getting a widows pension.

He needs to file income tax return now for the rental income, salary before he left and pension.

He said he read that if a salary is sourced in another country it is not taxable here. I thought it had to be returned and double taxation relief claimed?

 

[Joe_90]

I'd say that as he would not qualify for "Split Year Relief" his worldwide income would be taxable in Ireland with relief under Double Taxation.

 

[clueless]

What is "Split Year Relief"? My friend is coming back from Australia in August and starting work again in September. Do you mean that she will have to pay tax on the money that she has earned from January to August in Australia?

 

[Joe_90]

In the OP's query the person is resident in Ireland in both years. Where someone leaves Ireland and will not be resident in the year following departure they are deemed to be non resident from the date of departure, this is known as "Split Year Relief".

If someone is returning and was not resident in Ireland prior to the year in which they return then they are deemed to be resident from the date of return.

 

[xxx]

If it were a case he didnt come back till november so was non resident for 2015 - he could claim the split year then. Would he still have to pay tax on his pension here then with no credits or cut off?

 

[clueless]

Sorry I didn't make myself clear. She would be resident in Ireland in both years. January - August in Ireland, then August - December in Australia, January - to August in Australia and August - December in Ireland. I hope that makes it clearer....probably not....am confused myself!