Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 52: To ask the Minister for Finance his views on whether there is reason to change the provision in respect of definition of absence for the purpose of qualifying as a non-resident for tax purposes. [18360/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The residence rules were last updated by the Fianna Fáil-Labour Government in the 1994 Finance Act following a comprehensive review of the matter by the Revenue Commissioners and my Department. A person is regarded as resident in Ireland for tax purposes in a particular tax year if he or she spends: 183 days in the State in that year, or 280 days in aggregate in that tax year and the proceeding tax year. This aggregation rule does not apply if they are in the country for less than 30 days in the tax year being looked at.

The key 183 day rule that contributes to determining residence in Ireland is also a key rule in a number of other countries. A person is regarded as having spent the day in the State if he or she is there at midnight.

A number of structures were put into place in the Office of the Revenue Commissioners in late 2003, including a specialist high wealth individuals unit within the large cases division and specialist areas in each region which are capable of focusing on the tax compliance behaviour, including residence patterns, of wealthy people. I am informed by the Revenue Commissioners that the procedures adopted in relation to validating a claim to non-residence status depend on the circumstances in each case. In addition, Revenue has statutory powers to make relevant inquiries in relation to any aspect of tax returns including claims to non-residence status.

I have asked the chairman of the Revenue Commissioners to monitor the application of the current non-resident rules, through examination of cases handled in the Revenue large cases division and to provide me with a report once this examination is complete.