asked the Chancellor of the Exchequer what percentage of taxable income would be paid in income tax by (a) a United Kingdom resident, with two children aged under 11 years, working in the Republic of Ireland for a gross salary of (i) 5,500 punt and (ii) 11,000 punt and having no other income and (b) a resident of the Republic, with the same family, working in the United Kingdom for a gross salary of (i) £5,000 and (ii) £10,000, and having no other income.
The information requested is as follows :
1. Under the United Kingdom/Republic of Ireland double taxation agreement, a taxpayer's place of residence determines the way he is treated for tax purposes. For a taxpayer to be resident in one of the two countries, and working in the other, but not resident there, it has been assumed that case ( a) is a United Kingdom resident commuting each day into the Republic of Ireland to work. Conversely, case ( b) is assumed to be a Republic of Ireland resident commuting each day into the United Kingdom to work.
2. The figures given relate in each case to the 1980–81 tax year, taking into account proposals in both countries' 1980 Finance Bills, which are subject to the approval of their respective Parliaments.