ResidencePeterand Deirdre are moving to Ireland from the US on both 15 January 2017 and 15August 2017 respectively. This will have an impact upon their Irish taxposition and residency status.Pursuantto the provisions of Section 819 TCA 1997, an individual is regarded asresident in Ireland for a given tax year if any of the following tests aresatisfied: At any one time or several times in the tax year for aperiod amounting to 183 days or more; orAt any one time or several times in the tax year andthe preceding year for a period in the whole amounting to 280 days or more inthe State.
Section819 (2) TCA 1997 states an individual is present in Ireland for a period of 30days or less within a tax year, they will not be treated as tax resident. From2009, an individual will be regarded as being present in Ireland for a day ifpresent at any time during the day. Section 819(4) TCA 1997 stipulates anindividual is present in the State for any period of that date, then they areconsidered present for the day. A person can still elect to be resident inIreland for any given tax year.
In order to be successful, the individual mustprove that they have arrived in Ireland with the intention to remain residentin the following tax year.Basedupon the above, it is likely that Peter will be considered Irish resident for2017 as he has moved to Ireland from 15 January 2017 and will be in Ireland formore than 183 days. Deirdre, Anna and Lucy will not be resident. This is due tothe fact they are moving to Ireland from 15 August and will fall under the 183day requirement. Deirdre can elect to be resident in Ireland for 2017 if sheproves that she will remain resident in Ireland for the following tax year.
Peter and Deirdre will be resident in Ireland for the following years. Peterand Deirdre should also obtain US tax advice as it is possible that they willbe US tax resident in 2017, thus treaty provisions will need to be looked at inthis instance.