Typically, the disposal of an asset (by way of sale or gift) or the acquisition of an asset (by way of gift or inheritance) in one jurisdiction by a person ordinarily resident or domiciled in another jurisdiction, gives rise to the prospect of double taxation. The jurisdiction in which the asset is located may have rights to tax the transaction and the jurisdiction in which either party the transaction may be ordinarily resident or domiciled may also claim taxing rights. When those taxing rights intersect, one must ascertain if there is a Double Taxation Agreement or Convention in existence between the two jurisdictions in question. Without such a Double Taxation arrangement, the prospect of double taxation on the same event looms large. Mercantile Solicitors deal with the Irish UK Double Taxation Convention and the Irish US Double Taxation Convention which mitigate many of the potential pitfalls that might result in such double taxation.
From an Irish perspective, there are surprising complex rules to ensure that such taxable transactions do not occur without the Revenue Commissioners procuring payment of the relevant taxes. This is achieved by imposing secondary liability on professional advisers. Mercantile Solicitors are experienced in navigating their way around these issues which tend to arise in circumstances such as (1) When a non-resident person disposes of Irish assets and is liable to CGT, or (2) the administration of Deceased person’s estate in circumstances where there are non-resident beneficiaries, and/or non-resident executors and there are inheritances due to be paid out to non-resident beneficiaries.