+1I would have thought it is taxable in Ireland, with credit for the US tax. So maybe a liability or maybe not.
I phoned Revenue and was told verbally that we need do nothing.
once the disponer and assets are subject to US taxation that no further tax is due in Ireland
I phoned Revenue and was told verbally that we need do nothing.
As mentioned many times here, Revenue contacts can and do give out inaccurate info and in situations like this you really need independent professional advice.I'm just going to presume that the tax treaty applies (as I was told by the Revenue helpline) and ignore the ROS request to provide information for filing.
Thanks for the detailed reply and for the reassurance.I would agree with what Revenue told you in the call.
Your father is presumably Irish resident for tax purposes.
In the first instance, a charge to Irish CAT arises due to his Irish tax resident status.
However, if the 'situs' of the asset (US Bank Account) is in the US as determined under the Ireland-US double taxation agreement covering inheritance tax in Ireland and Federal Estate Tax in the US, then Ireland cannot tax property outside its territory unless:
- the disponer died domiciled in Ireland (or the disposition is governed by Irish law), or
- the disponer died non domiciled in the US.
Source: Article IV(2) of the Convention https://www.irishstatutebook.ie/eli/1950/act/18/schedule/1/enacted/en/html#sched1
If your aunt had acquired a US domicile which appears likely with limited ties to Ireland after 60+ years, then the inheritance by your Dad is outside the scope of Irish tax as the situs of the property (the US bank account) is based on wherever the disponer is domiciled.
This point is also key. Where property could escape tax in both jurisdictions, Article III of the Convention has a proviso to prevent this happening.
An IT38 is required to be filed once the taxable value of an inheritance exceeds 80% of the relevant group threshold. There is no taxable value in this scenario and so an IT38 would not be required in my opinion.
That's my reading based on what you have posted but, as always, seek professional advice if you want to settle the matter definitively.
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