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Dublin: 9 °C Sunday 19 May, 2013

How many Irish tax exiles have paid the ‘rich tax’ this year?

The tax was introduced in 2010 to target wealthy Irish exiles who earn more than €1 million a year and also have assets of over €5 million in Ireland.

Image: Photocall Ireland

A REVIEW IS needed on the domicile levy due to the low number of tax exiles who paid tax to the State this year, a TD has said.

Louth Labour TD Gerald Nash made the comments after being given up-to-date figures by the Minister for Finance, Michael Noonan. The domicile levy was introduced by Brian Lenihan in his Budget for 2010 to target wealthy Irish tax exiles who earn more than €1 million a year and also have assets of over €5 million in Ireland.  The move required the exiles to pay a levy of €200,000 per year, regardless of where they are tax resident.

In early 2012, the Finance Bill removed the condition of Irish citizenship for the payment of the €200,000 domicile levy from this year onwards. The changes mean that non-residents in Ireland will not be able to avoid the payment on the basis of their not being an Irish citizen.

This year, only 10 tax exiles have to date submitted returns to the Revenue Commissioners in relation to the domicile levy, with a total yield of €1,645,329 for the State for this tax year.

Deputy Nash commented:

Almost one in eight of Ireland’s super rich cohort of 540 individuals, people with assets of over €50 million, are declared to be tax exiles. These specific figures were confirmed by the Revenue Commissioners to the media in recent weeks. In total, figures for 2010 showed that there were in excess of 10,000 non-resident tax payers who in total contributed €49 million in tax to Revenue.

He said the “derisory sum” yielded from the domicile levy after the recent 15 November deadline for returns for the domicile levy “emphasises the stark need for the system to be reviewed in the forthcoming budget”. He said that the returns for 2011 are slightly down on 2010, when 11 people submitted returns to the tune of €1,667,011.

“With only ten returns received, it begs the questions to what sanctions apply to those who are obliged under law to pay the levy and choose not to,” said the Deputy. “In light of these figures, the Minister for Finance must urgently review the operation of the scheme, and ensure that a much more exacting tax regime is applied to those in the super-rich category who choose to be tax exiles.”

Read: Guess how many Irish tax exiles have paid the new ‘rich tax’?>

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Comments (31 Comments)

  • Bono loves to talk. Why hasn’t he ever said anything about the situation in Ireland and the poverty here. Health cuts, bondholders etc? Sure he turns up at Christmas to sing a couple of songs before he goes across the road to Lillies to do some back slappin., but it’s not good enough.

    He could have used his influence to help out more here, obviously there is a reason he hasnt, I just find it strange, or is he just another champagne socialist who lost touch a long time ago.

    Just give me what I want and no one gets hurt,
    Adebayo

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  • I’ve always thought that these people should have their passports revoked and be declared personae non grata – denied entry to the country forever more, including for their burial.

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    • What a good idea. We don’t needs their billions or business acumen here anyway. Let them take it away to Switzerland.

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    • Is that not were some of them may be living William otherwise they wouldn’t be tax exiles.

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    • Kerry, I meant ALL their money. No one has to live in Ireland.

      One solution is to cap tax, say at €500,000 per tax payer per year, then billions would roll into the state. Every time an industry gets a tax break it expands, it’s LESS tax we need, not more.

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    • If you read the story, William, you’d see that we aren’t getting their billions anyway. Might just make them think for a second about whether there’s more to life than paying less tax.

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    • Vodoo, that’s not how it works. People who earn large sums of money use the money to earn more money. Very few businessmen sit on their ass(ets).

      If they pay 50% in tax on say €10,000,000 profit/income per year in Ireland then that’s €5,000,000 they don’t have to invest. Over say 7 years that’s maybe €70,000,000 to €140,000,000 less they’ll have. To some extent the money is what keeps the score. As well as that they may need the €100,000,000 odd to buy some large business.

      With “workers” it’s generally different. Income is mainly just spent.

      Tax should be capped or reduced as a percent and not increased. If it was we would ALL be better off.

      The government just waste it anyway. Imagine paying €50,000,000 in tax to Reilly and his predecessors who blew it making a complete balls of designing and planning the children’s hospital.

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    • I think you’ll find that’s exactly how it works – there should be a real penalty for not taking on one’s responsibilities as a citizen. I think you’ll find that human behaviour is driven by many more factors than simple bean counting.

      You want to domicile yourself elsewhere and not pay your fair share of taxes, along with all your fellow citizens? Well, have at it my friend, but don’t expect to be able to spend half the year here and to come and go as you please. Don’t let the door hit you on the arse, etc.

      Which leads to another thought – wouldn’t it be preferable, rather than for domicile to be decided by reference to the number of days spent out of the country, for tax to be charged proportionately per day spent in the country?

      At the moment you can get away with paying no tax here by spending 182 days or less in the country in a calendar year, 280 days or less in two consecutive years, why not treat someone as having a proportionate domicile to the amount of time spent here and levy accordingly? I wouldn’t mind, but this probably wouldn’t even catch some of the Ansbacher type avoidance mechanisms that these guys avail of.

      Tell you one thing, though, bad and all as Harney and Reilly are, I’d rather see that €50,000,000 invested in public services, even allowing for a bit of waste, than squirrelled away in the Caymens. Of course, our last two Ministers for Health seem to have been more concerned with preparing the HSE to be chopped up and sold off to the likes of these tax exiles than actually providing a functioning service.

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    • Voodoo, where are you going with the “billions”?!

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  • Why not just turn Ireland into a tax haven.
    It would certainly save people having to do business in German/French in Switzerland, Liechtenstein or Monaco etc.
    Although our inept Europuppet Government wouldn’t have the vision or capability for that type of thing though.

    Organising the Gathering (a glorified charity tea party is more in their line)
    “Come home guys and watch us “politicians” destroy our country”
    “Come home and see us tax the hell out of our people to pay corrupt banker’s gambling debts”
    “Come home and see us assisting these corrupt bankers to throw people out of their homes”
    “Come home and see another generation Emigrating”

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  • Ask Bono and FG, they know who they are and FG/Labour are protecting them!

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  • If these people had any sense of national pride they pay there taxes here.

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    • Tax Loopholes still not closed, yet ordinary folks been driven to despair! Put that in your Awards and smoke it, FG!

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    • That’s right Stephen. It’s the ordinary that gets taxes imposed upon them overnight. Water, property, HHC, new digital communications licence…..all taxes taken from the working poor because these greedy, self indulgent hypocrites are in power. FG need to be shown who they actually work for and it’s not just those on the upper echelon of society. Budget day will tax a new hole out of us all.

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  • New definition of Irish, eejits. Electing people to govern who enrich the wealthy and beggar the poor while describing themselves as The Labour Party and calling themselves Socialists. Yes Eejits.

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  • They have more than €5 million of assets situated in Ireland. And Deputy Nash can’t work out how we might apply a €200,000 levy to them.

    Where do we find these cretins?

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  • No doubt they’ll seize 200K worth of their assets and sell them on at a fraction of the price, probably to the original owners.

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  • Denis O Brien gives so much back ! IBRC wrote off 175m in a rush to sell two companies to him two weeks before they awarded one of the companies an effective monopoly on water metering contracts ! Siteserv . Allegedly

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  • My idea for the “gathering 2013″ is to invite all tax exiles home for a big party in Gigganstown house. Gas them and burn them in a power station and give O Leary a 10 year dictatorship to clean this country spiritually , financially, and ethnically !

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  • Just me

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  • Mjhint 22/11/12 #

    Most of these people are true patriots. Why give their money to an inefficient & corrupt system. Most of them including the like of Bono invest directly into the economy of Ireland & do a lot of good for their country & community bypassing the corrupt system. Its great to have the power to show the politicians in this country the 2 fingers. I would do the same if I was wealthy enough as if they wanted my money they have to do the same as everyone else & work for it. Anyone complaining about tax exiles is deluded & not well informed.

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  • And allowed the shareholders to keep a 5m payout from a company that should have been liquidated

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  • Anyone with 5 mil of assets over here are more than likely employing a huge amount of people. These people need cosseting and not chased around the globe for on the greater scale of things is a poultry tax. Stop the socialist crap talk and look at the bigger picture. Bono employs how many in his hotel?

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  • Bono is god !

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