I've been unemployed for 4 years but have had income from a rental property and have opened overseas financial accounts. I have never filed a tax return. What should I do?
1. There is no difficulty with filing a late Income TAx return for the years which have elapsed where you have paid no tax. In most instances, if you do it with a reputable tax consultant the Revenue will not look for any penalties in relation to the tax being paid, provided you file the returns voluntarily and before the REvenue contact you seeking you to do so. As you are no doubt aware, foreign rental income received by an Irish resident is taxable in Ireland. If tax was paid abroad, then credit will be given for the tax paid abroad, under one of the relevant Double Tax treaties. I would advise you to seek advise in the country where the rental property is located, as you will probably have to file a tax return in that country as well. Normally income from rental property is tax at source in the country where the property is located. You will also have a tax exemption in that country which you can lawfully set against part of the tax. This might also reduce any Irish tax liability payable.
Barrister 17 years experience
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