Derek McDowell (Labour)

I wholeheartedly agree with Senator Browne on this recommendation, which I support strongly. There is nothing in the tax code which more disturbs and annoys ordinary taxpayers than what they see as an abuse of the residency rules. People who are manifestly Irish and who made their fortunes in the first instance in Ireland now live abroad purely for tax purposes. In essence, they are tax exiles. Frequently, they visit the country and leave before midnight, in which case they need not count that particular day as part of their residency for tax purposes. While I do not expect the Minister to accept the recommendation before us, he would send a useful and powerful signal if he were to indicate that he is unhappy with a clear abuse and intends to review the residency rules.

The recommendation moved by Fine Gael suggests residency for tax purposes should be based on citizenship. It is a useful starting point, though it may be a little too simplistic. No doubt, there are people who are Irish citizens who have not been here during the course of the year and who do not derive income in Ireland. I acknowledge that the section as recommended allows for that possibility. Citizenship is a good starting point. There should be an onus on people who are clearly Irish citizens to demonstrate why they should not contribute to the maintenance of public services here.