Ultra High Net Worth Individuals Tax

rdogg12794

Hypothetically say if I earned 15 Million a year from a business and sold the business for 45million

deposited all that hard earned cash in various banks within ireland. Bought some property exotic cars etc etc

How much would the government rid me of for my income and sale of the asset (business)

This is all Hypothetically speaking I Just want to understand the tax system for ultra high net worth people

thanks

srsly78

If you had that much money you wouldn't deposit it here. What you would do is deposit it all in tax havens, then pay yourself a modest salary from a foreign company. Then the Irish government would only get income tax on that modest salary.

In some countries income from investment is taxed at a much lower rate, this is very favourable to fatcats. You get murdered on investment income here, so why would you keep your assets here?

rdogg12794

srsly78 wrote: »

If you had that much money you wouldn't deposit it here. What you would do is deposit it all in tax havens, then pay yourself a modest salary from a foreign company. Then the Irish government would only get income tax on that modest salary.

In some countries income from investment is taxed at a much lower rate, this is very favourable to fatcats. You get murdered on investment income here, so why would you keep your assets here?

So if you deposit all the money in offshore accounts in countries with little to no tax rate you completely avoid irish income tax and capitals gains tax ?

Is that legal, and would you be able to use a debit/credit card from an offshore account to pay for living expenses here ?

srsly78

You wouldn't even be tax resident here unless spending 6 months a year (or meeting other requirements over 2 years). Why wouldn't it be legal?

You could pay yourself a modest income from a foreign company, and only pay tax on that income. Meanwhile your REAL income continually accrues in foreign accounts - which you would be supposed to pay tax on in the foreign jurisdiction.

It's a very complicated area, but the facts are that people that operate internationally have lots of options.

Alan Shore

While srsly78 is correct most people may leave the country to answer your question if you stayed here.

You would pay over €7.5m in Income Tax, PRSI, USC.

The gain depending on your base cost but say you built it up from the start would be subject to CGT @ 30% so €15m.

The Income on the proceeds would taxable as income so deposit interest 30%, rental income at possibly 41%, 4% 7% Tax PRSI USC. State savings are exempt but there is a max that you can put in.

rdogg12794

rdogg12794 wrote: »

Hypothetically say if I earned 15 Million a year from a business and sold the business for 45million

deposited all that hard earned cash in various banks within ireland. Bought some property exotic cars etc etc

How much would the government rid me of for my income and sale of the asset (business)

This is all Hypothetically speaking I Just want to understand the tax system for ultra high net worth people

thanks

I don't you will be able to get an answer to that question on boards.ie as the transactions you describe would involve some detailed corporate and income tax planning carried out by teams of accountants and tax consultants.