Tax Clearance Cert - CGT *and* not-yet-due IT need to be paid in full?

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Pearl

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Hello AAM,

Proceeds of property sale sitting with my solicitor pending tax clearance cert per rules for non-residents. Paid the CGT in full via my accountant weeks ago. Revenue have responded asking me to file and pay the Income Tax for 2024 too. This Income Tax is not due until November. Will they not issue the tax clearance cert based on tax due in the future?

Thanks,

Pearl
 
I'd suggest path of least resistance here - file the 2024 tax return. The tax should be due on 31st October 2025 provided preliminary tax rules have been followed. However, if you want the clearance quickly then do as they say would be my answer.
 
The OP needs to file their 2024 tax return now, as a matter of absolute urgency.

If they haven't the money to do that, get the lawyer to release sufficient funds from the proceeds to pay the tax bill and the accountant's fee if that is an issue.
 
Thanks for the responses. Can you explain to me how Revenue view this? If the CGT has been paid weeks ago, what is the logic behind not releasing the tax clearance cert when the 2024 Income Tax is not overdue until end of November?
 
Pearl said:
what is the logic behind not releasing the tax clearance cert when the 2024 Income Tax is not overdue until end of November?
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It's very simple: as you're non-resident, they have limited or perhaps no means of punishing you if you fail either to file your 2024 Income Tax return in November (it's due well before the end of that month but we'll let that slide) or to pay whatever balance if anything you owe on foot of it.

And they probably have no stomach for pursuing you internationally for it, if you do default in either or both ways.

So instead they demand that you settle all outstanding loose ends now.
 
Thanks again for the additional info. I'm employed in Republic as PAYE worker. I live in Northern Ireland. I have filed Form 11 due to rental income only for the past 10 years, always before deadline. I've been issued tax clearance certs multiple times before when I've not yet paid the previous years tax. I've never been told I need to clear previous year's tax before receiving the clearance - hence my surprise at this requirement suddenly arising in context of property sale.
 
Pearl said:
I've never been told I need to clear previous year's tax before receiving the clearance
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That's unfortunately a basic part of the Letter of No Audit process.

It's rather crazy that the Letter of No Audit process applies to someone in your position.

You or your accountant could ask Revenue to waive the Form 11 2024 requirement for you if it is likely to cause you hardship.
 
An update on this. Income Tax was paid on September 25th, receipt issued by Revenue on September 26th. I still don't have the clearance cert. I phoned Revenue a few weeks ago. Spoke to a fairly gruff individual who said "there's hundreds in your same situation". I hear there's a backlog, but I find it crazy that it's even legal for my funds to be held hostage for months by their administrative/staffing failures. It's been 3 months since CGT was paid, and almost a month since IT was paid.
 
Pearl I hear your dilemma, there are beneficiaries who are not doing their tax return and delaying the entire distribution for all beneficiaries due to revenues non release of a tax clearance. It is not good that one single beneficiary can deprive distribution by simply not bothering to do their return(s) so as to delay and even inherit more, they have no problem paying fines as if the other beneficiaries happen to die off prior to distribution they would inherit the entire estate.
 
Thanks for the replies. I am lost for words at this process. I feel the applications should be dealt with in categories. I'm a super straight forward case, whose clearance should have been issued within a few days of payment. On a related note, do solicitors typically pass on the interest earned on funds held for long periods?
 
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