Responding to a request for details on plans to tighten existing revenue rules in relation to tax exiles in the Dáil last month, the Minister for Finance noted the eight submissions received under the public consultation on tax residence rules and that the comments made therein are being considered in deciding whether to amend the residence rules at this time. However, the Minister noted that the current rules are broadly in line with systems prevailing in most other OECD jurisdictions and that it is Government's view that Ireland's “interests would be best served by operating our residence rules within the best practice guidelines of the OECD”.

Chartered Accountants Ireland responded to the public consultation on reform of the tax residence rules in May of last year. In our submission we expressed our view that the system which is already in place in Ireland, with its concepts of domicile, residency and ordinary residency, is well-developed and appropriate to a modern open economy. We highlighted that is clear and easy to understand, and the application of the rules to these days is relatively unambiguous. The Minister as part of his response resonated this view noting comments that “the present rules are considered clear and workable and the clarity, certainly and stability of our domestic tax regime enables us to compete effectively in the international economic context”.

The Minister also noted that in addition to the Domicile Levy and the High Earners restriction, the Irish tax treatment of individuals is broadly in line with the system prevailing in most other OECD jurisdictions and that it is Government's view that Ireland's residency rules operate with OECD best practice guidelines.

According to the Minister's response any changes to the Irish tax residency rules “will be determined in the context of Budgets over the lifetime of the Government”.

The Minister's full response to question on the reform of the tax residence rules (Ref no. 2026/13) can be read on the Oireachtas website.