Section 71 Foreign securities and possessions
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(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.
(2) Subsection (1) shall not apply to any person who satisfies the Revenue Commissioners that he or she is not domiciled in the State.
Amendments
Subs (2) substituted by Finance Act 2010 section 9(a) for 2010 and later tax years.
(3) [In the case mentioned in subsection (2)]1, 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.
Amendments
1 Substituted by Finance Act 2010 section 9(b) for 2010 and later tax years.
(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.
Amendments
Subs (3A) inserted by Finance Act 2010 section 41(1) for income and dividends received on or after 4 February 2010.
Am I always taxed on the "gross" income inclusive of foreign tax credits?
(3A) Yes. If you are in receipt of foreign income, and you get a payment from the foreign government in respect of tax paid by another person. This might apply, for example, if you receive a dividend from a Maltese holding company - you (as an indivi...
(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).
What deductions am I entitled to if I have foreign rental income?
(4) If your foreign income would have been taxed as rental income under Schedule D Case V had it arisen in the Republic of Ireland, you are entitled to the same deductions as apply to Irish rental income. ...
(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.
Amendments
Subs (4A) inserted by Finance (No. 2) Act 1998 section 1(2) on and from 23 April 1998.
Did the "Bacon" restrictions apply to foreign property?
(4A) Section 97(2A)-(2E) deny, from 23 April 1998, a deduction to you as a landlord for interest on money borrowed to buy, improve or repair let residential premises. In the case of foreign properties, this restriction applies from 7 May 1998. Note: ...
(5) Any person aggrieved by a decision of the Revenue Commissioners on any question [as to domicile]1 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.
Amendments
1 Substituted by Finance Act 2010 section 9(c) for 2010 and later tax years.
(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.
Do I have a further right of appeal?
The Appeal Commissioners must hear and determine your appeal in the same manner as an appeal against an income tax assessment. You have a right, where necessary, to have your case reheard by a Circuit Court Judge. You also have a right to have a case...
