International Tax Credits and Social Taxes

Welease

Hopefully someone can shed some light for me..:) Revenue seemed a bit confused when I spoke to them

I worked for a company in the UK for many years. In 2007 I relocated back to Ireland with the same company.. Over the years I have been given stock as part of my package..

In accordance with UK law, the UK site continues to pay a portion (20%) of the taxes due for stock I was granted while working in the UK, as it becomes available for me to collect... (it's granted in 5 year future vesting dates)..
I have been able to get the UK Tax authority to give me statements on what tax has been paid in the UK so I can claim credits here...

So the tax side is fine..

However, the UK also pays NI/PRSI credit on the stock value also.. and the law states (apparently) that I can claim credit for that in Ireland.

I spoke to Revenue and they had no idea ..
I have letters from the UK tax authority for the tax paid, but they don't issue any PRSI/NI letters..
I have letters from my employer stating what they paid (as I had to reimburse them)

It's not mega money, but it's about 600 Euro that I would prefer not to have to pay twice...

Any suggestions?

(my current plan was to write a letter to revenue explaining the sums and send a cheque for the tax minus the UK tax and UK NI and see what they say.. my concern is that they say nothing, and if get audited in the future then an issue is raised and i get fined/interest payments etc.)

DoMyBooks

If you are unsure you can
1. Seek professional advice or
2. Send in an Expression of Doubt. If the revenue belive it is genuine this will give you 'some' protection against interest and fines.

http://www.google.ie/search?hl=en&q=site:www.revenue.ie+Expression+of+Doubt&aq=f&aqi=&aql=&oq=&gs_rfai=

(Obviously thats my personal opinion not professional advice)

Welease

Thanks for the response..

I gave Revenue another call today.. spoke to a very nice lady who tried her best to help but unfortunately no one in the office understood the relevant laws enough to offer specific advice.

The agreement was to pay the tax minus the known credits for income tax, but not to deduct the social taxes already paid.

In order to receive credit/refund for the social taxation elements, i was asked to ring social welfare who denied responsibility, who passed my on to EU records, who denied responsibility and told me to... you get the picture.. final request was to recontact the UK and ask them..

I was considering going down the professional advice route, the one problem I had previously was when the laws start to cross country boundries, then a lot of the professional advice wasn't relevant..

I'll give the UK one more try and then call in a professional

Thanks.

SaschaKyiv

Hi Welease,

I've read your posts above and positions such as this can sometimes be complex. I have spent a number of years working in the area of cross-border equity remuneration schemes. If you do decide to seek professional advice I can recommend a former colleague that works in the area.

Regards,
Sascha.