Is this person liable to pay tax?

lovelife92

I know someone who is a european resident. They have lived here for a few years, but have been on jobseekers for two years now, not even attempting to look for a job, basically using the system for their gain. They recently sold their property back home, and as far as I am aware have not declared it here, do they have to pay tax here on that? also how does that affect receiving welfare, if you have a lump sum of money from selling property abroad?

I would like to know, as it does not seem fair to people who are in need of that money every week, and it almost seems like theft

Peregrinus

Irish residents are liable to Irish tax on their worldwide income and capital gains. If they made a gain on the sale of the foreign property, it's in principle within the charge to Irish capital gains tax. Depending on the circumstances, there might be relief available under any Double Taxation Agreement in force between Ireland and the other country.

As for social welfare entitlements, the consequence of owning a house, or selling a house, for SW purposes are the same regardless of whether the house is in Ireland or abroad.

CIARAN_BOYLE

Peregrinus wrote: »

Irish residents are liable to Irish tax on their worldwide income and capital gains. If they made a gain on the sale of the foreign property, it's in principle within the charge to Irish capital gains tax. Depending on the circumstances, there might be relief available under any Double Taxation Agreement in force between Ireland and the other country.

Sounds as if they are irish resident non domiciled to me. Tax would only be due if the money was remitted into ireland.

lovelife92

Thanks for responses. So are they entitled to live off social welfare for years to come, even though they have a lump sum of money from selling property abroad?

CIARAN_BOYLE

lovelife92 wrote: »

Thanks for responses. So are they entitled to live off social welfare for years to come, even though they have a lump sum of money from selling property abroad?

Well job seekers allowance (not benefit) is subject to a means test. The lump sum should contribute to their means however ownership of the property would also contribute to their means.

Peregrinus

lovelife92 wrote: »

Thanks for responses. So are they entitled to live off social welfare for years to come, even though they have a lump sum of money from selling property abroad?

SFAIK, they're in exactly the same position as they would be in if they had a lump sum of money from selling property in Ireland.

Mrs OBumble

If they owned a property of any value oveaseas, and did not have a mortgage that needed to be repaid when the property was sold, then they wouldn't have been eligible for much job seekers benefit.

The assessed capital value of property that you're not living in ( in Ireland or overseas) is enormous.

lovelife92

There was no mortgage. Should I report it?

exaisle

lovelife92 wrote: »

There was no mortgage. Should I report it?

That's up to you. It's not really a taxation question...more of a moral one..

kaymin

lovelife92 wrote: »

There was no mortgage. Should I report it?

Yes - it's the rest of us mugs that are paying for these parasites

lovelife92

Will I say they have no intention of buying a property here with the capital, or getting a job, which is proven in the fact they haven't done an interview in 2 years? or is that way too personal?

tanit

lovelife92 wrote: »

I know someone who is a european resident. They have lived here for a few years, but have been on jobseekers for two years now, not even attempting to look for a job, basically using the system for their gain. They recently sold their property back home, and as far as I am aware have not declared it here, do they have to pay tax here on that? also how does that affect receiving welfare, if you have a lump sum of money from selling property abroad?

I would like to know, as it does not seem fair to people who are in need of that money every week, and it almost seems like theft

I don't want to enter into an argument but do you pay this level of attention to Irish people doing the same thing?

And please don't get me wrong I know things like this happen. But I have been on welfare for several years before I got back into employment and I can tell that not having interviews means nothing. You can be sending hundreds of CV and not getting any interview at all. In fact you don't even get answers and at some point when I was on Welfare I told them about the situation and the answer was that so long as I had some kind of proof that I had sent the CV it was enough, even an autoresponder was enough.

And after sending a lots of CV the first proper job I got a few years back wasn't through interviews it was because I knew someone that introduced to place I'm in for a short work experience (unpaid) and ask me to stay. And I know more people in my situation that got jobs that way and not through sending CVs.

Sometimes it's pure good luck/ bad luck.

lovelife92

No, I have had family members and friends on welfare before, and I had no problem. This person has told me they have no intention of ever working in Ireland, so I don't understand how they can sell a property abroad and live off social welfare here also, the fact they are from another country is a problem for me. I would never think of going to another country and signing on their welfare system with no intention of ever getting a job, its disrespectful I think.

infogiver

lovelife92 wrote: »

No, I have had family members and friends on welfare before, and I had no problem. This person has told me they have no intention of ever working in Ireland, so I don't understand how they can sell a property abroad and live off social welfare here also, the fact they are from another country is a problem for me. I would never think of going to another country and signing on their welfare system with no intention of ever getting a job, its disrespectful I think.

you already got information and advice about this on another forum last week.
Do you expect to get a different answer here?