Catherine Murphy (Kildare North, Independent)
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125. To ask the Minister for Finance the present regulations which define a person's habitual residency for the liability of tax in this State; if his Department has placed an estimate on the number of Irish citizens who conduct much of their business activities in this State, yet are domiciled abroad under the current regulations; if so, if he will share this figure for each of the past 15 years to date in 2015; and if he will make a statement on the matter. [27157/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the tax position of an individual depends on their residence, ordinary residence and domicile and on the source of income. 

The rules regarding residence and ordinary residence are detailed in sections 819 and 820 of the Taxes Consolidation Act (TCA) 1997. The concept of domicile is based on case law and is not prescribed in legislation.

An individual who is resident and domiciled in Ireland is taxable on their worldwide income and gains. An individual 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 domicile levy, provided for in part 18C TCA 1997, is charged on an Irish domiciled individual whose world-wide income in a relevant tax year exceeds €1m, whose Irish property is greater in value than €5m and whose liability to Irish income tax in a relevant tax year is less than €200,000.

Residence

Section 819 TCA 1997 provides that an individual is resident for tax purposes if he or she spends

- 183 days or more in the State in a tax year; or

- 280 days or more in the State between the current tax year and the previous tax year, with a minimum of 30 days in each year.

A day for residence purposes is one on which an individual is in the State at any time during a day. 

Ordinary residence

Section 820 TCA 1997 deals with ordinary residence. Ordinary residence relates to residence that has a degree of continuity. For instance, an individual could be non resident for a year but would remain ordinarily resident if the absence from the State was of a temporary nature. Ordinary residence arises as a result of an individual being resident in the State for three consecutive years of residence.  Ordinary residence ceases after three consecutive years of non-residence.

Domicile

Domicile is a concept of general law. Domicile is acquired on birth and generally linked to the domicile of the father and not the place of birth.  An individual can only have one country of domicile. It is difficult to change domicile.  If an individual seeks to change domicile, he or she must prove that he or she now resides in a different country with the intention of remaining there permanently.

Revenue gathers statistics, from tax returns, on citizens who are resident but not ordinarily resident, individuals who are resident but not domiciled, and individuals who are non-resident.  It is important to note that the circumstances of individuals who are non-resident for tax purposes but who file tax returns can vary widely. They include, for example,

- Irish nationals who have moved abroad for work reasons but who retain their home here (their tax return is generally only in respect of rental income on their Irish home);

- foreign nationals who never resided here but who have investments (including property)  here;

- foreign nationals who worked here for a period and who may have acquired Irish tax residence for that period (for example, individuals who worked here on a temporary assignment) may retain an Irish tax liability, after ceasing to be resident, in respect of investments made in Ireland during their period of residence.

The following information in relation to the numbers of individuals falling into each category in the years 2010 to 2013 might be helpful to the Deputy. More extensive historical information is not readily available and could not be obtained without conducting a protracted examination of Revenue records.

Terence Flanagan (Dublin North East, Independent)
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126. To ask the Minister for Finance if tax relief on maintenance payments will be introduced (details supplied); and if he will make a statement on the matter. [27160/15]

Michael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy's question is in relation to tax relief for maintenance payments in respect of children. There is no provision in the tax code for tax relief in this regard. This is the case regardless of whether the payments are made voluntarily or under a legally binding maintenance arrangement.

Maintenance payments in respect of children are not taxable in the hands of the children or the receiving spouse. The effect of this is that the payments are treated in the same way as if the taxpayer was providing for the child out of his or her after-tax income. This is in line with the tax treatment of all other parents, where the cost of maintaining their children is not tax deductible.

As regards maintenance payments in respect of a spouse, the position is generally that the spouse who makes payments under a legally enforceable maintenance agreement is entitled to claim a tax deduction in respect of the payments. The maintenance payments are then taxable in the hands of the receiving spouse and the couple are treated for tax purposes as if unmarried.