Tax on foreign income

[PVanderhelt]

Hello,
I'm a Belgian national living in Ireland 11 years. In the last few years I have collaborating with a company in the U.S. I translate various technical manuals and documentation for them from English into Dutch. I had opened a US account remotely giving them passport scan and W8-Ben form where I get paid by this company once I complete a job, this income is not taxed in the U.S. I asked for tax advice on this a few years ago from a large accounting company in the Dublin and a rather junior tax consultant told me that since I was not domiciled in Ireland I was not tax liable in Ireland for the income generated outside of Ireland unless I transfer that income to Ireland that so far I have not done. Another accountant that I know told me the same thing so I was never too worried. Also the tax office in Belgium told me that since I live in Ireland and I'm registered at the embassy, I don't have to pay the tax on this income in Belgium either, but I should seek tax advice in Ireland. I have never declared this income in Ireland or Belgium or U.S. I wonder if I'm tax compliant or not ? Not that I have gained a fortune I'm talking about a couple of thousand dollars, but after reading all about Swiss Leaks and Luxemboug Leaks and foreign accounts I started getting a bit worried.

Thanks
Peter

 

[Gordon Gekko]

Those accountants were referring to the remittance basis of taxation.

Assuming that you're Belgian domiciled, you are only subject to foreign income to the extent that it is brought back into Ireland.

However, my own view is that this is not foreign income - You are doing the work in Ireland. On that basis, the remittance basis is irrelevant.

It's a small amount of income so the scale of the issue depends on the level of your other income.

 

[PVanderhelt]

Thanks Gordon yes I do the work from Ireland remotely, the last time I was in the US was maybe 4 or 5 years ago on holidays. I think I must seek some more serious tax advice and hopefully it will not cost more than the tax due. Thanks again !