First Previous (PART IX Special Provisions as to Married Persons, Non-residents, Temporary Residents, Bodies of Persons, Incapacitated Persons, etc.) Next (Chapter III Special Provisions as to Bodies of Persons, Incapacitated Persons, Trustees and Agents, Personal Representatives and Receivers)

6 1967

INCOME TAX ACT, 1967

Chapter II

Special Provisions as to Non-residents and Temporary Residents

Persons temporarily resident outside the State.

199. —Every person whose ordinary residence has been in the State shall be assessed and charged to tax, notwithstanding that at the time the assessment or charge is made he may have left the State if he has so left for the purpose only of occasional residence outside the State, and shall be charged as a person actually residing in the State upon the whole amount of his profits or gains, whether they arise from property in the State or elsewhere, or from any allowance, annuity, or stipend (save as herein is excepted), or from any trade, profession or employment in the State or elsewhere.

Non-residents: assessment.

200. —A person not resident in the State, whether a citizen of Ireland or not, shall be assessable and chargeable in the name of any trustee, guardian, or committee of such person, or of any factor, agent, receiver, branch, or manager, whether such factor, agent, receiver, branch, or manager has the receipt of the profits or gains or not, in like manner and to the like amount as such non-resident person would be assessed and charged if he were resident in the State and in the actual receipt of such profits or gains:

Provided that in the case of a partnership, the precedent partner (as defined in section 69) or if there is no precedent partner, the factor, agent, receiver, branch, or manager shall be deemed to be the agent of a non-resident partner.

Non-residents: profits from agencies, etc.

201. —A non-resident person shall be assessable and chargeable in respect of any profits or gains arising, whether directly or indirectly, through or from any factorship, agency, receivership, branch, or management, and shall be so assessable and chargeable in the name of the factor, agent, receiver, branch, or manager.

Non-residents: control over residents.

202. —Where a non-resident person, not being a citizen of Ireland or an Irish firm or company, or branch thereof, carries on business with a resident person, and it appears to the inspector that, owing to the close connection between the resident person and the non-resident person, and to the substantial control exercised by the non-resident person over the resident person, the course of business between those persons can be so arranged, and is so arranged, that the business done by the resident person in pursuance of his connection with the non-resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non-resident person shall be assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the non-resident person.

Non-residents: charge on percentage of turnover.

203. —(1) Where it appears to the inspector or, on appeal, to the Special Commissioners, that the true amount of the profits or gains of any non-resident person chargeable with tax in the name of a resident person cannot in any case be readily ascertained, the non-resident person may, if it is thought fit by the inspector or Commissioners, be assessed and charged on a percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid, and in such case the provisions of this Act relating to the delivery of statements by persons acting on behalf of others shall extend so as to require returns to be given by the resident person of the business so done by the non-resident person through or with the resident person, in the same manner as statements are to be delivered by persons acting for incapacitated or non-resident persons of profits or gains to be charged.

(2) The amount of the percentage under subsection (1) shall in each case be determined, having regard to the nature of the business, by the inspector by whom the assessment on the percentage basis is made, subject to appeal to the Special Commissioners.

(3) If either the resident person or the non-resident person is dissatisfied with the percentage determined either in the first instance or by the Special Commissioners on appeal, he may, within four months of that determination, require the inspector or the Special Commissioners, as the case may be, to refer the question of the percentage to a referee or board of referees to be appointed for the purpose by the Minister for Finance, and the decision of the referee or board shall be final and conclusive.

Non-residents: merchanting profit.

204. —Where a non-resident person is chargeable to income tax in the name of any branch, manager, agent, factor or receiver in respect of any profits or gains arising from the sale of goods or produce manufactured or produced outside the State by the non-resident person, the person in whose name the non-resident person is so chargeable may, if he thinks fit, apply to the inspector or, in case of an appeal, to the Special Commissioners, to have the assessment to income tax in respect of those profits or gains made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and on proof to the satisfaction of the inspector or, as the case may be, the Special Commissioners of the amount of the profits on the basis aforesaid, the assessment shall be made or amended accordingly.

Non-residents: restrictions on chargeability.

205. —(1) Nothing in this Chapter shall render a non-resident person chargeable in the name of a broker or general commission agent, or in the name of an agent not being an authorised person carrying on the regular agency of the non-resident person or a person chargeable as if he were an agent in pursuance of the provisions of this Chapter in respect of profits or gains arising from sales or transactions carried out through such a broker or agent.

(2) The fact that a non-resident person executes sales or carries out transactions with other non-residents in circumstances which would make him chargeable in pursuance of the provisions of this Chapter in the name of a resident person shall not of itself make him chargeable in respect of profits arising from those sales or transactions.

Temporary residents.

206. —A person shall not be charged to tax under Schedule D as a person residing in the State, in respect of profits or gains received in respect of possessions or securities outside the State, who is in the State for some temporary purpose only, and not with any view or intent of establishing his residence therein, and who has not actually resided in the State at one time or several times for a period equal in the whole to six months in any year of assessment, but if any such person resides in the State for the aforesaid period he shall be so chargeable for that year.