Billionaire tax exiles get free pass to stay — and not pay tax

IRISH billionaires who were in Ireland the day the lockdown came into place will get a free pass to stay here for as long as it lasts.

The Sunday Independent has learnt that the super-rich tax exiles will be covered by ‘extraordinary natural occurrences’ under residency rules.

The news comes as over 30 of the country’s wealthiest tycoons declared themselves non-resident for tax purposes — claiming status in countries such as Gibraltar and Monaco.

A Revenue spokesperson said: “Where an individual is prevented from leaving the State on his or her intended day of departure due to extraordinary natural occurrences or an exceptional third party failure or action — none of which could reasonably have been foreseen and avoided — the individual will not be regarded as being present in the State for tax residence purposes.

“Where a departure from the State is prevented due to Covid-19, Revenue will consider this ‘force majeure’ for the purpose of establishing an individual’s tax residence position.”

The individual will also be able to stay on for the duration of the lockdown until they are able to leave again.

Force majeure, meaning ‘superior force’, is a common clause in contracts that frees a party from obligation when an extraordinary event beyond their control, such as a hurricane, plague or ‘act of God’, prevents them from fulfilling their contractual agreement.

The Revenue spokesperson said the tax exiles “must keep documentation to prove they have been kept here for whatever reason” that is outside of their control.

This can include reasons such as the travel ban and feeling unwell and a need to self-isolate if they or a close relative with whom they have been directly in contact has had coronavirus symptoms.