Please note guidance from the Taxation Committee on acting for non-resident vendors.
The Taxation Committee wishes to remind practitioners that they may have a secondary liability to Capital Gains Tax and/or Income Tax in circumstances where they act for a non-resident vendor in relation to the sale of a property in the State.
Sections 1034, 1035 and 1043 of the Taxes Consolidation Act 1997 (“TCA”) refer.
Practitioners should ensure that they have sufficient information to prepare a return, if necessary, and they should seek an Indemnity from their client in respect of any liability to tax, penalties and interest arising by virtue of sections 1034, 1035 and 1043 TCA.
The Committee further recommends that practitioners ensure that they have an irrevocable authority from their client to deduct and remit Capital Gains Tax/Income Tax to the Revenue Commissioners and to withhold the sales proceeds until such time as all tax affairs are in order.
This article originally appeared in the Law Society eZine. For more information on the eZine and other online publications, visit the eNewsletters page.
To access more practitioner resources and information on taxation issues, see the Taxation Committee.