Foreign income which is exempt from tax in Ireland was one matter in particular which gave rise to queries when completing panel 415 of the 2005 Form 11. The Revenue guide states “Enter the amount of any foreign income which is exempt from tax in Ireland at Line 415(a). State the nature of the income and why it is not taxable in Ireland in the box(es) provided at Line 415(b)”.

Revenue have commented on the matter further. The purpose of the entry is to determine the granting of small income exemption (or marginal relief) in cases where an individual has Irish income below (or just above the exemption limit) but could be disqualified from the relief because they had foreign income which wasn't taxable in Ireland. It would primarily concern non-resident individuals, but would also include Irish residents who had foreign income which wasn't taxable in Ireland, but would be taken into account in determining total income (for example, a foreign governmental salary or pension).

It is our understanding that the question is being removed from the 2006 return. For 2006, once a person identifies that they are not resident, the income exemption will not be granted.