367 / 432
GAZETTE
AUGUST/SEPTEMBER
1994
Example -
A non-national who takes
up residence in Ireland on
the Ist August and who by
virtue of (A) or (B) above
becomes resident for tax
purposes will be taxed on
the basis of income only
from the I st August to the
5th April in the tax year
concerned.
Consequences
The Finance Act 1 9 94 has disposed of
the " p l a ce of a b o d e" and "habitual
visits tests." The " p l a ce of a b o d e" and
"habitual visits test" was
unsatisfactory. An individual was
regarded as resident if he had a place
of abode available for his use and
visited here for any period of time. It
was not necessary for the individual to
actually stay in this a c c ommo d a t i o n, it
was sufficient that the " p l a ce of
a b o d e" was available for his use and
ownership was not required. In
addition, " p l a ce of a b o d e" included
shooting lodges and other types of
holiday a c c ommo d a t i o n. The 1 9 94
Finance Act therefore will e n c ou r a ge
the acquisition of house property in
Ireland by foreign nationals as the
ownership of such types of
a c c ommo d a t i on will not automatically
involve Irish residence.
O R D I N A RY R E S I D E N CE
An individual will be regarded as
ordinarily resident in Ireland for a tax
year if he has been an Irish resident for
each of the three proceeding tax years.
(Finance Act 1994 Section 151-152).
Prior to the 1 9 94 Finance Act,
Ordinary Residence was regarded as
equivalent to habitual residence or
permanent residence although not
necessarily a physical presence. This
concept has again been codified in the
1 9 94 Finance Act and an individual
will be ordinarily resident in Ireland
as soon as three years of residence
have been completed. An individual
acquiring Irish residence in Y e a r 1
(i.e., the 183 days rule) and remaining
resident for years two and three will
be ordinarily resident in year 4, even
though that individual may not
actually be resident in year 4 because
of physical presence. The opposite is
also the case, in that loss of ordinary
residence will take place after three
sequential years without residence.
This can be of particular significance
to Irish nationals emigrating to other
countries where it will take three
years of physical residence outside
Continued on page 344
A N ASTHMATIC CHILD
C AN LEAD A NORMAL LIFE
. . . a n d y o u c a n h e l p !
Asthma affects a quarter of a million people in Ireland alone.
Many children and adults suffer unnecessarily with the
condition because of lack of understanding.
The Asthma Society is trying to ease this situation by helping
sufferers to understand that, with the correct treatment, the majority
of children and adults can lead a normal active life.
If you have a client who wishes to donate to a
worthy cause please think of the Asthma
Society and the amount of young lives that
can be brought back to normality,
y The Asthma Society of Ireland is a
registered charity
A s t h m a S o c i e ty o f I r e l a n d ,
2 4 A n g l e s e a S t r e e t, D u b l i n 2 .
T e l ( 0 1 ) 6 7 1 6 5 5 1 F a x ( 0 1 ) 6 7 1 4 6 1 0
The Asthma Society is pleased to acknowledge the financial support
of Allen & Hanburys Ltd in funding the cost of this advertisement.
ASTHMA
SOCI ETY
O F
I R E L A N D
FINEX
- CENTRE FOR FUTURE OPTIONS AND TRADING
Law Society members are invited to attend a presentation on the
operation of the Futures Exchange at the Financial Services Centre, on
15 December 1994 at 2.00 pm.
Contact: Mary Kinsella, Law Society. Tel: 671 0711
WASTE PAPER, FILES, DOCUMENTS,
CONFIDENTIAL WASTE ETC.
U p l i f t ed f r o m O f f i c es a nd C o mm e r c i al P r e m i s es
SECURITY SHREDDING SERVICE
For C o n f i d e n t i al W a s t e,
Signed Certificates Guaranteeing Destruction
TREECYCLER " SERVICE
For O r d i n a ry W a s t e Paper,
Recycling Certificates Issued
m \ j l t i c y
C
l * j t s e r v i c e
For Paper, C a n s, C u p s, Bottles, T o n er C a r t r i d g es
One bin
takes it all!
Bags, Bins and Desktop Treecyclers Provided
The Most Convenient Office Recycling Scheme Available
1
No Premises Too Large or Too Small
Fast Reliable Collection Service Bags Provided, etc
Other Forms of Paper, Packaging and Plastics Recycled
Phone For Information, Service and your
Free 30 Page Brochure and Guide to Recycling.
HANNAY
RECYCLING
J o hn W H a n n ay & Co Ltd is an I SO 9 0 0 2 Registered C o m p a ny
TO L KA QUAY, DUBL IN 1
CT:
( O l ) 8 5 5
1 0 8 8
343