Tommy Broughan (Dublin North East, Labour)
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Question 91: To ask the Minister for Finance the review or surveillance which is taking place of persons who have declared themselves to be non-resident for tax purposes but who are continuously present here; the estimate of the number of such high net worth persons claiming non-residency for tax purposes; the estimate of the cost to the Exchequer of non-residency as a tax avoidance mechanism; and if he will make a statement on the matter. [19266/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that inquiries relating to residence are a feature of the risk based programmes operated by Revenue. The procedures adopted in relation to validating a claim to non-residence status depend on the circumstances in each case. The administration of the validation procedures is a matter for the Revenue Commissioners and the methods used to verify claims to non-residence include a range of tests and an intelligence dimension which for obvious reasons they do not publicise.

However, in relation to the work carried out by the High Wealth Individuals Unit of Revenue as one dimension of its risk-based programme for 2005, the Commissioners have advised me that they have no reason to conclude that there is failure to comply with the statutory rules governing non-residence status. They will continue to include examination of a cross-section of cases where there is a claim to non-residence status in their risk-based programmes.

I am also informed by the Revenue Commissioners that it is not possible at present to identify the number of Irish domiciled persons claiming to be non-resident for tax purposes. Income tax returns for 2002 onwards request data from self-employed taxpayers in relation to their residence and domicile status. This is however not captured electronically which means it is not practicable to derive global statistics in relation to claims to non-residence status. The Revenue Commissioners are currently looking at means of capturing this data electronically in the future which will make it practicable to derive such statistics.

I would remind the Deputy that Irish citizens who are non-resident for tax purposes are obliged to file Irish tax returns only in respect of:

—income arising in Ireland e.g. income from directorships, rents etc. and

— gains from the disposals of land, buildings and certain other assets in the State.

There is no statutory obligation on them to return details of income or gains arising anywhere else in the world. Therefore it is not possible to establish the amount of these incomes or gains or of any associated tax.