Is this Tax Avoidance or Tax evasion

Bandana boy

Say you have an opportunity to work 2 part time jobs.
One in the Uk and 1 in Ireland they both pay €25K

If you register in each country seperately and pay the income tax as if it was your only income you would pay significantly less tax than a €50K job in either location.

Is this Tax avoidance and maybe morally shady or Tax evasion and essentially breaking the law ?

Do the Irish and UK goverments have a check in place for this scenario ?

Maths
€25K Ireland =Net €21,231
€25K UK =Net €20,417

Combined €41,648

€50K Ireland =Net €34,896
€50K UK =Net €37,418

Eoin

I think this is a better forum for this thread

The_Bot

There are a number of considerations potentially relevant here which the OP does not provide.

However, it can be reasonably said that this concept is likely to be ineffective as, for an Irish tax resident and domiciled individual, Ireland would have full taxing rights on that individual's worldwide income. The UK income would be added to that individual's Irish income and Irish tax would be calculated accordingly.

Credit would typically be given in Ireland for the UK tax suffered. However, if the Irish effective rate of tax is higher that the UK effective rate, then additional tax will be payable in Ireland up to the Irish effective rate. Effectively in such cases, the individual would end up paying full Irish tax on the combined UK and Ireland income, but with part of the tax staying with the UK Revenue and the remainder with Irish Revenue.

In my view, in respect of an Irish tax resident and domiciled individual, the deliberate failure to disclosure such UK income to the Irish Revenue is tax evasion, is illegal and is potentially punishable by interest, penalties, publication as a tax defaulter and/or imprisonment.

Finally, the Irish and UK Revenue routinely exchange information with one another in respect of residents of their respective jurisdictions. The scope of such exchanges has increased steadily increased over recent years.

dogsears

Bandana boy wrote: »

pay the income tax as if it was your only income

Is this Tax avoidance and maybe morally shady or Tax evasion and essentially breaking the law ?

But it isn't your only income. So you would be misrepresenting the truth. For me, any element of deceit, such as this, puts you in the evasion category.

dbran

It would be tax evasion not to disclose all the relevant facts.

Have you considered trans border relief?

http://www.revenue.ie/en/tax/it/reliefs/trans-border-workers-relief.html

dbran