Proposals for extra tax breaks for tax exiles must rank as the leading contender for this year's silly season story.
A Government-backed Forum on Philanthropy has suggested that 400 Irish tax exiles might invest €15 million each over ten years in return for being able to live in Ireland for six months in every year while simultaneously claiming to be tax exiles and paying minimal tax elsewhere.
This aspiration is a bit rich given that only a handful of wealthy exiles have bothered to pay the recently introduced domicile levy based on their worldwide income and wealth. In my naivety, I had always assumed that philanthropy was linked to donating rather than tax breaks.
Instead of loosening requirements and becoming a tax haven for rich exiles, Irish tax rules should lean towards US laws where exile means absolute rather than part-time exile. The proposed PAYC (Pay-As-You-Choose) should be replaced by PAYE on worldwide incomes, or face forfeiture of all rights to citizenship, residence and even occasional visits.
Letter published in the Sunday Business Post on 28th July 2013.
