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The taxpayer is non-Irish domiciled. He was tax resident for 2015 and 2016 but non-resident for 2017 and probably will be for 2018 so not ordinarily resident. On arriving in Ireland held a bank account with proceeds of past gains and income. He did not create a separate account but continued to lodge capital and income receipts into it. Can you confirm if the following interpretation is correct? The result is a mixed fund so Revenue will deem the order of remittance to be • Post-arrival income • Post arrival capital • Pre-arrival capital Remittances in a year when neither resident nor ordinasrily resident would not incur Income Tax or CGT as only taxable ion Irish source income and specified assets. These remittances should also help erode the post arrival receipts in the mixed fund to get back to the pre-arrival capital

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Asked on 2 January 2018 5:12 pm
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The order of remittance is deemed to be post arrival income until that income has been used up (Scottish Provident Institution v Allan (1903) 4 TC 591). There is no deemed order of remittance of capital in such a mixed fund.
The decision lays with the taxpayer whether to deem the remittance to be taxable post arrival capital or non taxable pre arrival capital and in practice it is common to use a pro rata basis (a proportion of each for each remittance) since it is consistent over time.
Your final statement is accurate just note that the taxpayer should stick to the same remittance basis from the mixed fund year on year i.e., if remittances are all deemed post arrival capital in 2017 that should also be the basis adopted in 2018 and 2019.

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Answered on 10 January 2018 5:11 pm