"Worldwide Income" definition for non resident

P

Pauley

Registered User
Messages
8
Hello,

Non resident here - Question.

Does Revenues definition of "WorldWide Income" / "World Income" include Capital gains (outside of Ireland)?

I ask because, as a non resident, this figure is used on Form 11, Q17 to work out the portion (if any) of Irish tax credits applicable.

I'm in touch with two professional preparers, but each have a different opinion on this. One says it's ALL income including CG, but another says it's not to include CG (leaving mainly only Earned and Dividend income) and references something in the tax acts that says "INTERPRETATION AND BASIC CHARGING PROVISIONS
"Pr.1 S.3 (4)" TCA 1997 that says:
"References to profits or gains in the Income Tax Acts shall not include references to chargeable gains within the meaning of the Capital Gains Tax Acts."

I cannot find anything on Revenue site that definitively defines this.

Any ideas?
 
Your first "preparer" is not a very competent tax professional if they think that worldwide income includes capital gains.

Your second preparer is correct, of course.

If you're minded to look at the legislative provision referred to in Q.17 of the Form 11 (which is section 1032 TCA 1997), you will see that it refers to the proportion that "his or her income subject to Irish income tax bears to his or her total income from all sources (including income not subject to Irish income tax)".

Since chargeable gains can't be subject to income tax, it's difficult to envisage any construction of the words in the above provision, that could suggest one should include in "total income from all sources" amounts that could never be subject to income tax. That is what your first preparer is suggesting needs to happen. That would be one of the most apples and orangey calculations in the history of fruit.
 
Towger said:
Some of these 'professional' companies display it prominently on their website to give an impression of Revenue approval.
Click to expand...
That's rather unprofessional thing for any firm to do as knowledge of a TAIN number basically allows anyone to contact Revenue and purport to represent the firm in relation to client affairs.

A TAIN number isn't exactly classified information but firms generally will treat theirs with care. I can't imagine any of my own clients know my firm's TAIN number.
 
T McGibney said:
That's rather unprofessional thing for any firm to do as knowledge of a TAIN number basically allows anyone to contact Revenue and purport to represent the firm in relation to client affairs.

A TAIN number isn't exactly classified information but firms generally will treat theirs with care. I can't imagine any of my own clients know my firm's TAIN number.
Click to expand...
5 seconds on Google comes up with one of these tax refund professionals:
IMG_20231101_113142.jpg
 
Towger said:
5 seconds on Google comes up with one of these tax refund professionals:
Click to expand...
In fairness that company's Terms and conditions page doesn't claim they're providing professional services.

Regardless, I stand by my comments in relation to TAIN numbers and confidentiality risk.
 
Last edited:
Tx for the responses and the reference in the tax code.

As a lay person I wouldn't have known that...

I'm never confident enough to do my own tax returns, but yet, when I engage and pay someone to do them I ALWAYS find errors. Very often I'll find that something was corrected on a draft, then something else on a subsequent draft and then find the initial error re-appearing on the next draft!
 
You must log in or register to reply here.
Back
Top