Do you have experience of international taxation, tax

Hi

Thanks for your patience

No he only has an obligation to declare the worldwide income to the tax department for the country in which he resides, which is why the Australian tax office are asking for the UK and Irish position as well as their own, but he can also declare any UK or Irish tax suffered along with the income , as we (in the UK) have a double taxation agreement with Australia - which means tax suffered on the originating country can be offset against the Australian tax due

As far as the UK tax office is concerned - this only has to have the UK tax position declared and not Australia (and only Ireland if Northern Ireland as this remains part of the UK)

Let me know if I can assist further

Thanks

Sam

Let me know if I can assist further

HI

Is he generating any income as a director from the Irish company? Either salary or dividend or is it just the company that is making a profit on which tax is paid

He only declares UK income on the UK tax return so if the other directorship is Southern Ireland then he only declares this to Australia as his worldwide income and also to Southern Ireland (Irish tax office) as this is where it arises

Thanks

Sam

Hi

I do apologise - I was sure that it read that the individual as living in Australia

In that case that changes my answer - and I nee to know where does this close associate live and work from

Thanks

Sam

HI

Then he must declare is UK income and only declare his Irish income IF he draws a a salutary or dividends or benefits or paid out expenses which you state he does not

Your three questionsI will reply as direct answers to the points as you raised them

1. On his personal tax return will he have to or should he declare the companies he is a director of in Republic of Ireland

NO as there is no income or other payments arising so no need to declare the position itself

2. What are the implications of doing so. Will he have to furnish information about what he has earned from those Irish companies, ie show to HMRC copies of the Irish tax returns and bank statements etc ?

No implications - as there is no income. If you were to advsie its position in the white space of the tax return or HMRC are aware of the position and have queries at which point then, then they have the right to ask for bank statements and Irish company returns

3. Are the earnings which he declares from the Irish companies taxable, even if he has not brought or transferred those earnings into the UK and on what rate of tax is this applied ? So lets assume he has earned 70k after tax from the Irish companies, How would this be taxed in the UK, if at all ? Does it make a difference that he did not bring or transfer any of that money to the UK

Yes absolutely, as he is a UK citizen so liable to tax on worldwide income whether remitted to the UK or not, but this is confusing as you state he has no income salary, dividends or other payment from the Irish company ???? He would pay tax at his highest rate (when combined with other incomes)

So if the combined oncome was in excess of £45000 then 40% isf more than £100,000 then loss of personal allowances (£1 allowance for every £2 over the £100K limit) and 45% tax and loss of personal allowances for income in excess of £150,000.

Thanks

Sam