Question on Remittance

[stefanop]

A non-domiciled pays taxes in Ireland on a remittance basis for the income that he produces outside of Ireland. What does exactly “remit” means ?

For example:
If I’m non domiciled in Ireland and transfer the income generated outside of Ireland via bank transfer I’m remitting income to Ireland, there is no doubt about this. What if I use a credit card that goes to my foreign account and use it for example to shop at Tesco in Ireland ? Is this considered remittance ? If I buy a painting abroad and pay with the non Irish account for example, and bring the painting back to Ireland is this still considered remittance ?

I'm confused ...

According to a article in the warrenip.ie

“Where non-domiciled individuals come to Ireland and use their wealth accumulated outside of Ireland to cover their day to day living expenses, it is possible for such individuals to live in Ireland free of tax.”

Any views ?
Thanks
Seamus

 

[stefanop]

The question arose because we had a discussion last weekend in the pub. One of our colleagues is Estonian, he lives and works in Dublin but has a bank account across the border in NI where he transfers some money from his wages at times and buys shares. He made some good money in the last few years and reckons that because he’s a Estonian national and wants to move back to Estonia in a few years, he only pays tax if he remits the money gained into Ireland. With the gains he made in the last few years he wants to buy a new car in the north, pay the car dealer in the north and bring the car to Dublin. He doesn’t think it is remittance to the Republic since technically there is no exchange of cash or money between NI and the republic, he remits a car but no money. I think it is unless he plans to drive the car only in the north which is not what he’s planning anyway …