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Disclosures of Foreign Income and Assets with No Tax Liability

  • 27-04-2017 11:53am
    #1
    Kopli
    Registered Users, Registered Users 2 Posts: 5 ✭


    Does some form of disclosure have to be made as part of the current qualifying disclosure amnesty for a property located abroad but which has operated at a loss for every year?
     
    We rent out the property but make a net loss after management fees and fixtures and fittings.
     
    The revenue website seems to imply that a qualifying disclosure should only be made in cases where there exists a tax liability. 
     
    Is there a requirement that we declare all offshore assets, even those without a tax liability? And if there is a requirement to declare even loss-making assets, then how do you go about declaring them?


Comments

  • #2
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Kopli wrote: »
    Does some form of disclosure have to be made as part of the current qualifying disclosure amnesty for a property located abroad but which has operated at a loss for every year?
     
    We rent out the property but make a net loss after management fees and fixtures and fittings.
     
    The revenue website seems to imply that a qualifying disclosure should only be made in cases where there exists a tax liability. 
     
    Is there a requirement that we declare all offshore assets, even those without a tax liability? And if there is a requirement to declare even loss-making assets, then how do you go about declaring them?

    well is a loss to you a tax loss. often it's not.

    anyway I would be filing income tax returns (including income and expense) and building up a reserve of losses forward which will save you in the future if the property becomes profitable.

    also do you file a tax return in the other jurisdiction?


  • #3
    rgossip30
    Registered Users, Registered Users 2 Posts: 2,590 ✭✭✭rgossip30


    There is a rule that you cannot offset losses in one year against a gain . When it comes to UCIT funds a loss on the initial investment that remains a loss after a period of time 8 years if its treated like an Irish fund no tax is payable .A gain in some years it not counted in this instance .You would need to cover yourself by a disclosure if they are likely to find out .
    The helpline did say that having a loss in one Financial Institution and a gain in the other when totaled if a loss is still shown no tax is payable .


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