Martin Mansergh (Tipperary South, Fianna Fail)

Unless requested, I will only address what has been discussed.

I accept it is a fraught question and there are genuine concerns on this matter on all sides of the House. The difficulty about it is that, in this sense, we are not an island and the greater the wealth, the greater the mobility. One only has to read the press across the water for debates that reach into politics, where treasurers of parties are involved in non-domiciled rules. I do not propose to accept the amendments but for the following reasons. The report proposed by Deputy Burton is clearly a report on the contribution to the Exchequer made by so-called tax exiles. The Minister has stated on previous occasions that he is informed by the Revenue Commissioners that there is no one register or list of so-called tax exiles and nothing in Irish law thus far makes reference to tax exile status.

The taxation of individuals in the State is in line with that prevailing in most OECD jurisdictions. Individuals who are not resident for tax purposes pay tax here only on income arising in this State. They pay tax on income arising in the State and from income derived from working here. Many individuals - I am not saying most or all - who declare on tax returns that they are non-resident in this State do not have an Irish address. Many of these non-residents are foreign nationals or have a foreign domicile and many non-resident Irish citizens or Irish domiciliaries included in this figure may have become non-resident for reasons unrelated to taxation but may have retained Irish investments such as rental property. Individuals leaving the State are not required to give reasons for leaving. In other words, it is not true to say that 6,000 individuals, or whatever number is suggested, are tax exiles. Some non-residents have an Irish tax liability but it is not true to say that all or most of them are Irish domiciled individuals who have moved out of Ireland for tax reasons. As there is no definition of tax exile in Irish law, nor any way of determining how many non-resident taxpayers are non-resident for tax reasons, it is difficult to prepare a report on the subject.

In referring to the measures introduced in their Finance Act 2010, the Deputy is presumably referring to the domicile levy charged on an individual Irish domiciled and an Irish citizen whose worldwide income exceeds €1 million, whose Irish located property is greater than €5 million and whose liability to Irish income tax is less than €200,000.

Incidentally, in the previous year's Finance Act, the Minister abolished the Cinderella rule. This was originally introduced when the Labour Party was part of the Government. Before the abolition, an individual could be present in the State for most or practically all of the day, provided he or she left just before midnight. Hence the name Cinderella.

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