Mick Wallace (Wexford, Independent)
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25. To ask the Minister for Finance his plans to abolish the non-domicile regime; and if he will make a statement on the matter. [17569/15]

Michael Noonan (Limerick City, Fine Gael)
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Domicile is a common law legal term, rather than a tax concept. Every person must have a domicile, whether domicile of origin or domicile of choice. They can have only one at any given time.

An individual who is resident and domiciled in Ireland is taxable on their worldwide income and gains.

A person who is resident but not domiciled in Ireland is only taxable on their Irish source income and any foreign income which they remit into the state, the so-called remittance basis of taxation. Regarding employment income, the charge to tax extends to all income from an Irish employment and income attributable to the performance of duties of a foreign employment in the State. The income attributable to the performance of the duties of a foreign employment outside the State is chargeable only when remitted to the State. Remittances are effectively amounts which are brought directly or indirectly into the State. (e.g. using foreign income to pay off a foreign loan, where the proceeds of the loan had been used in the State.)

There can be many valid reasons why a person resident in Ireland would not be domiciled here and avail of the remittance basis. However, it is important to ensure that the combined impact of domicile status and the remittance basis do not inappropriately operate in such a way as to avoid taxation in Ireland. Anti-avoidance measures have been introduced over the years for this purpose. E.g.:

1 - Provisions to tackle an abuse whereby a non-domiciled spouse would gift income or the proceeds of a sale to a domiciled spouse, who would then remit the amounts into Ireland avoiding a charge to income tax or CGT as the remittance basis only applies to non-domiciles.

2 - Up to FA 2010 the remittance basis was available to Irish citizens who were not ordinarily resident in the State. From 2010, the remittance basis is only available to non-domiciles.

3 - Up to 31 December 2005, a resident but non-domiciled individual with income from a non-Irish sourced employment qualified for the remittance basis. Following FA 2006 changes, the portion of that income attributable to the performance of the duties of employment in the State no longer qualifies for the remittance basis.

While all tax policies are continually open to review, it is not customary for the Minister for Finance to comment in advance on issues that are appropriate for consideration in the context of the Budget.