Question on tax in foreign account

M

malpes180

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Hello I would like to ask a question in relation to a taxation issue on a foreign account. I'm a italian national but live in Ireland since 2005 as me and my irish wife decided to move back from New York that year. I'm currenlty a PAYE as earn a wage working from a local company

Before moving to Ireland I lived in the U.S. with my brother for a few years and back in 2001 we opened a joint account with Ameritrade to buy and sell shares. My brother moved to Italy also in 2005 but we kept the account in the U.S. as it's handy to buy and sell shares. So far i didn't declare anything to the irish taxman mainly because our shares were in negative territory and the the dividends were in the region of just 40$ a year or so. Anyway this year the shares went up and we sold them at a profit of about 4000$. Considering that I'm irish resident for tax purposes but the Ameritrade account is a joint account with my brother which is tax resident in italy am I supposed to to pay CGT tax on the full 4000$ or just on the 2000$ ? My view is that only CGT tax on 2000$ is payable to the irish taxman since it's a joint account and my brother would pay the CGT tax on the remaining 2000$ to the italian taxman. Is this the case or how does it work ? I think it's a complicated scenario.

Thanks a lot to whoever can give me a answer
 
If you are not Irish domiciled, then you are taxable only on foreign income and gains that you remit to this counry. If you do not remit any gains or income to Ireland then there is no tax liability.

However, you need to ensure that you are not Irish domiciled.
 
Domo,

Thanks a lot for the clarification. I'm indeed tax resident in Ireland but not domiciled despite the fact that I live in Ireland most of the year and I'm married with a irish national. I think that to be considered domiciled you need to completely severe the ties with your original country, but I still have many connections with Italy, a house that we use for holiday and go there at least a couple of times per year. This is even better I need to check with a italian accountant, if I'm liable for CGT there the rate is even lower than Ireland , CGT on gains in shares in italy stands @ 12.5 percent at the moment.

Thanks again
 
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