Monday, May 4, 2009

Electronic tagging for tax exiles of 'high net worth' proposed


The tracking devices are usually built into ankle monitors

The tracking devices are usually built into ankle monitors

HUGH LINEHAN

ELECTRONIC TAGGING for “tax exiles” is being considered by the Department of Finance in advance of next week’s budget.

The measure is aimed at monitoring the presence in the State of individuals who claim to be non-resident for tax purposes.

Last year, 5,803 people claimed non-residency for tax. The Revenue believes that 440 of those are “high net worth” individuals. “These are the people who we’d be aiming this proposal at,” a spokesman for the department said.

Foreign-based Irish millionaires can avoid Irish tax if they spend fewer than 183 days in the State. Last November, Minister for Finance Brian Lenihan abolished the so-called “Cinderella” rule, whereby an individual is not deemed to have spent a day in the country if they leave by midnight.

“We’re still concerned that there are a few fairy tales being told about where people are actually living,” said the spokesman.

Electronic tagging is a form of non-surreptitious surveillance consisting of an electronic device attached to a person, usually certain criminals, allowing their whereabouts to be monitored.

The devices locate themselves using GPS and report their position back to a control centre via a mobile phone network. The devices are usually built into ankle monitors, which are designed to be tamper-resistant and will alert the authorities to tampering attempts. According to the spokesman, certain technical issues remain to be resolved before the plan is implemented.

“For example, many of these people have ‘panic rooms’ in their homes to protect themselves against criminals,” he said. “We’re not absolutely sure of the technicalities, but if these rooms are lead-lined, they might block the signal from the electronic tag.

“In theory it might be possible for a high-net-worth individual to remain in a panic room for days or even weeks without us knowing.”

The Office of the Revenue Commissioners is in discussions with a US-based high-technology security company, FailProof, on providing the service.



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