Can anyone explain the meaning of this passage from the Revenue document?
The Remittance Basis of Assessment - Part 05-01-21
5.4. Where an individual’s income qualifies for the remittance basis of assessment, is his or her foreign income, accumulated before he or she became Irish resident for tax purposes but remitted here AFTER he or she became Irish resident, liable to Irish tax?
Strictly, yes, however there is a long-standing Revenue practice to the effect that for individuals moving to Ireland for the first time, or Irish citizens returning to live in Ireland having been non-resident and non-ordinarily resident when the income was earned, funds accumulated from income earned abroad prior to 1 January in the year that the individual becomes Irish resident will not be liable to income tax even if remitted after that date.
1. Why does this document refer to Irish citizens returning? I thought the remittance basis was only for those who are non-Irish domiciled? Does it mean Irish citizens who are non-Irish domiciled?
2. And why does it only refer to Irish citizens returning? What about French citizens or UK citizens returning to live in Ireland?
3. And who exactly does this concession about accumulated pre-residency funds apply to? Can it only be used the first time a non-Irish domiciled person becomes tax resident in Ireland? What if a non-Irish domiciled person becomes tax resident in Ireland a second time or a third time?
4. For example, what if a French national and French domiciled person lives in Ireland for 5 years when they are age 25. They then move to live in France for 30 years. They then return to live in Ireland when they are age 60. They have funds accumulated of 500,000 from income earned in France over the previous 30 years. So will these funds of 500,000 be liable to income tax if they are remitted to Ireland when they are tax resident in Ireland for a second time? Or can this 500,000 be remitted to Ireland tax free?
The wording in this Revenue document seems to be extremely vague
Is it just poorly worded or is it deliberately vague?
The Remittance Basis of Assessment - Part 05-01-21
5.4. Where an individual’s income qualifies for the remittance basis of assessment, is his or her foreign income, accumulated before he or she became Irish resident for tax purposes but remitted here AFTER he or she became Irish resident, liable to Irish tax?
Strictly, yes, however there is a long-standing Revenue practice to the effect that for individuals moving to Ireland for the first time, or Irish citizens returning to live in Ireland having been non-resident and non-ordinarily resident when the income was earned, funds accumulated from income earned abroad prior to 1 January in the year that the individual becomes Irish resident will not be liable to income tax even if remitted after that date.
1. Why does this document refer to Irish citizens returning? I thought the remittance basis was only for those who are non-Irish domiciled? Does it mean Irish citizens who are non-Irish domiciled?
2. And why does it only refer to Irish citizens returning? What about French citizens or UK citizens returning to live in Ireland?
3. And who exactly does this concession about accumulated pre-residency funds apply to? Can it only be used the first time a non-Irish domiciled person becomes tax resident in Ireland? What if a non-Irish domiciled person becomes tax resident in Ireland a second time or a third time?
4. For example, what if a French national and French domiciled person lives in Ireland for 5 years when they are age 25. They then move to live in France for 30 years. They then return to live in Ireland when they are age 60. They have funds accumulated of 500,000 from income earned in France over the previous 30 years. So will these funds of 500,000 be liable to income tax if they are remitted to Ireland when they are tax resident in Ireland for a second time? Or can this 500,000 be remitted to Ireland tax free?
The wording in this Revenue document seems to be extremely vague
Is it just poorly worded or is it deliberately vague?