Which country supersedes in Double Taxation?

stainluss

I saw the following rule:
[One is tax resident if they’re present for] 280 days or more in a tax year plus the previous tax year taken together, with a minimum of 30 days in each year.

However if the country I’m in on year two has a double taxation agreement with Ireland and I’m there for more than half the year (this being their residency test), where should I pay tax? Specifically with regards to income on US investments which would be foreign to both countries.

I read the double taxation agreement but it seems to deal mostly with gains arisen in the agreement states rather than a third state like the US.

Can I choose? Or would it default to the other country as I’m actually there that year?

Any help greatly appreciated.

barneystinson

It. Depends. This is one of those "get proper advice" situations.

dogsears

The Double Taxation Agreement will have a tie breaker clause to determine which country a person is to be treated as resident in when they are resident under the domestic rules in both countries. Those agreements can be hard to fathom and are not all the same, so I would definitely agree professional advice needed

stainluss

dogsears wrote: »

The Double Taxation Agreement will have a tie breaker clause to determine which country a person is to be treated as resident in when they are resident under the domestic rules in both countries. Those agreements can be hard to fathom and are not all the same, so I would definitely agree professional advice needed

Thanks dogsears, I found that since posting.

It seems to revolve around where a “permanent home” is available so have reached out to revenue to see how this is defined eg lease vs purchase vs family home.

barneystinson

stainluss wrote: »

Thanks dogsears, I found that since posting.

It seems to revolve around where a “permanent home” is available so have reached out to revenue to see how this is defined eg lease vs purchase vs family home.

Revenue aren't in the tax advisory business, it's in your interest, if there's material sums involved, to go and pay for proper advice, from a tax advisory.

dogsears

As Denis O'Brien will gleefully tell you, having a permanent home "available" to you means exactly that - available. It doesn't matter if its rented or not or whether you own it or not or whether you might expect to live long term etc, if its available to you it counts. Permanent in this context means the kind of home, not whether you intend to live there for ever i.e. not a tent in a garden.

DOB got away with his profit on selling O2 shares because the kitchen in the Dublin house owned by his company was unfinished and possibly dangerous i.e. no-one could possibly say the house was "available" to live in as a home at that point. Just c 60m euro in tax riding on that!

the goon

Sorry don't mean to hijack the thread but I had an unusual query. Buddy's family (husband and kids) living here in Ireland but she is ordinarily non resident for last three years, working in the UK but paid by company in Dubai. Presume that tax payable here is on any amount repatriated to Ireland... Any ideas? Just interested and no doubt have their own professional advice.