Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 266: To ask the Minister for Finance the yield to the Exchequer if Irish citizens claiming to be non-resident for tax purposes were to lose their non-resident status; and if he will make a statement on the matter. [5056/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The taxation of individuals in the State is in line with that prevailing in other jurisdictions, that is to say — (a) individuals who are resident in the State for tax purposes are taxable here on their worldwide income; and (b) individuals who are not resident here for tax purposes pay tax here only on income arising in the State.

I have no plans to change this treatment and nor have I plans to make all Irish citizens living abroad resident here for tax purposes. Whether or not an individual chooses to live here or abroad — for whatever reason — is a matter for that individual and the State will not interfere with an individual's choice of where he or she wishes to live. Indeed, many Irish citizens choose to live abroad for reasons other than the tax system.

As regards the questions raised by the Deputy, as non-resident individuals (including non-resident Irish citizens) have an obligation to make a tax return only in respect of their Irish sourced income, it is impossible to quantify the potential tax yield if all Irish citizens living abroad were to pay tax here on their worldwide income. There is also the added difficulty that, under the terms of double taxation agreements between this State and another jurisdiction, that other jurisdiction may have the primary taxing rights on income arising there and there would be no yield to the State on the income in question.