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Taxes Consolidation Act, 1997 (Number 39 of 1997)

71 Foreign securities and possessions.

[ITA67 s76(1),(2)(a), (3), (5) and (6); F(MP)A68 s3(2) and Sch PtI; FA74 s46; FA90 s17(1)(a)(ii); FA97 s146(1) and Sch9 PtI par1(4)]

(1) Subject to this section and section 70, income tax chargeable under Case III of Schedule D in respect of income arising from securities and possessions in any place outside the State shall be computed on the full amount of such income arising in the year of assessment whether the income has been or will be received in the State or not, subject to, in the case of income not received in the State—

(a) the same deductions and allowances as if it had been so received,

(b) the deduction, where such deduction cannot be made under, and is not forbidden by, any other provision of the Income Tax Acts, of any sum paid in respect of income tax in the place where the income has arisen, and

(c) a deduction on account of any annuity or other annual payment (apart from annual interest) payable out of the income to a person not resident in the State,

and the provisions of the Income Tax Acts (including those relating to the delivery of statements) shall apply accordingly.

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(2) Subsection (1) shall not apply to any person who satisfies the Revenue Commissioners that he or she is not domiciled in the State, or that, being a citizen of Ireland, he or she is not ordinarily resident in the State.

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(2) Subsection (1) shall not apply to any person who satisfies the Revenue Commissioners that he or she is not domiciled in the State.

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(3) [3]>In the cases mentioned in subsection (2)<[3][3]>In the case mentioned in subsection (2)<[3], the tax shall, subject to section 70, be computed on the full amount of the actual sums received in the State from remittances payable in the State, or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of such remittances, property, money or value brought into the State in the year of assessment without any deduction or abatement.

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(3A) (a) In this subsection “foreign tax” means a tax chargeable and payable under the law of a territory other than the State which corresponds to income tax or corporation tax.

(b) Where income arising outside the State is chargeable to tax under Case III of Schedule D and a payment is made under the law of a territory other than the State to the person in receipt of the income by reference to foreign tax paid by another person, then the amount of income so chargeable shall be increased by an amount equal to the amount of the payment.

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(3B) (a) This subsection shall apply where a person referred to in subsection (2) applies, outside the State, any income arising from securities or possessions in any place outside the State, in the making of a loan, or the transfer of money to that person’s spouse or civil partner, or in the acquisition of any property which is subsequently transferred to that person’s spouse or civil partner.

(b) Where this subsection applies, any sums received in the State on or after 13 February 2013 from—

(i) remittances payable in the State,

(ii) property imported,

(iii) money or value arising from property not imported, or

(iv) money or value so received on credit or on account in respect of such remittances, property, money or value,

which derive from the loan, or transfer of money or property referred to in paragraph (a), shall be treated, for the purpose of subsection (3), as if the sums received in the State had been brought into the State by the person referred to in subsection (2).

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(4) Income arising outside the State which if it had arisen in the State would be chargeable under Case V of Schedule D shall be deemed to be income to which sections 75 and 97 apply, in so far as those sections relate to deductions to be made by reference to section 97(2)(e).

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(4A) For the purposes of subsection (4), section 97 shall apply as if references to the 23rd day of April, 1998, in subsections (2A), (2B), (2C) and (2E) of that section, were references to the 7th day of May, 1998.

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(4B) Income arising to a person from property situated outside the State which, if it had arisen from property in the State, would be chargeable under Case V of Schedule D shall include income from any such property outside the State transferred by that person to another person to hold in trust pursuant to the terms of a Debt Settlement Arrangement or a Personal Insolvency Arrangement entered into under the Personal Insolvency Act 2012.

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(5) Any person aggrieved by a decision of the Revenue Commissioners on any question [4]>as to domicile or ordinary residence<[4][4]>as to domicile<[4] arising under subsection (2) may, by notice in writing to that effect given to the Revenue Commissioners within 2 months from the date on which notice of the decision is given to him or her, make an application to have his or her claim for relief heard and determined by the Appeal Commissioners.

(6) Where an application is made under this section, the Appeal Commissioners shall hear and determine the claim in the like manner as an appeal made to them against an assessment, and the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

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(5) A person aggrieved by a decision of the Revenue Commissioners on any question as to the domicile of that person arising under subsection (2) may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 2 months after the date of the notice of the decision.

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[1]

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Inserted by FA98No2 s1(2).

[2]

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Substituted by FA10 s9(a). As respects the year of assessment 2010 and subsequent years of assessment.

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[-] [+]

Substituted by FA10 s9(b). As respects the year of assessment 2010 and subsequent years of assessment.

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Substituted by FA10 s9(c). As respects the year of assessment 2010 and subsequent years of assessment.

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Inserted by FA10 s41(1). This section applies to income and dividends received on or after 4 February 2010.

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Inserted by FA13 s6. Deemed to have come into force and takes effect on and from 1 January 2013.

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Inserted by FA13 s100(1)(a). Applies on and from 27 March 2013.

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Substituted by F(TA)A15 s35(4)(b). With effect from 21 March 2016 per S. I. No 110 of 2016.