Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 20: To ask the Minister for Finance if he or his Department has examined legislative measures in place in other States to end the tax exile status with a view to introducing such measures in this State. [31310/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A person is regarded as resident in the State for tax purposes in a tax year if he or she spends: (a) 183 days in the State in that year, or (b) 280 days in aggregate in that tax year and the preceding tax year.

An individual who is present in the State for 30 days or less in a tax year will not be treated as resident for that year unless he or she elects to be resident. Also, a day will only count if the individual is present in the State at the end of the day.

However, even if an Irish domiciled person establishes non-residence he or she remains liable to Irish tax on income arising in Ireland (e.g. income from directorships, a trade or profession, rented properties etc.). The only income which escapes Irish tax for individuals in this category is income arising elsewhere in the world outside Ireland.

As regards capital gains, Irish domiciled non-resident individuals remain liable to Irish capital gains tax on disposals of land, buildings or shares deriving their value from these assets and certain other assets such as minerals in the State or other assets related to exploitation of such minerals. They are not liable to Irish capital gains tax on assets outside this category e.g. shares or equities in companies not deriving their value primarily from land, buildings etc.

The tax residency rules were last updated in the 1994 Finance Act. These rules are similar to the rules that apply in many other developed countries and they are constantly kept under review.