A client of ours moved to Australia to do contract work in 2012 and is returning to Ireland later this year.
Her only foreign income is from an employment in Australia which she is taxed on. I am reviewing the tax returns prepared for the past few years, my understanding is as follows:-
In the year where she was considered resident in Ireland – all worldwide income should be declared on her tax returns with a deduction for foreign tax paid.
In years where she is Non resident – but Ordinarily resident, her Australian employment and tax are exempt from being declared, just Irish Income, and she is entitled to Irish tax credits based on the proportion of Irish Income over worldwide Income.
Years where she is non resident; Just Irish source Income declared with Irish tax credits based on the proportion of Irish Income over Worldwide Income.
Is the above correct?