Hanna and Sophia McNamara are sisters and are Irish domiciled. They were both employed by multi-national, Mukai, a mobile phone company: Taxation Assignment, NUI, Ireland
| University | National University of Ireland (NUI) |
| Subject | Taxation |
Hanna and Sophia McNamara are sisters and are Irish domiciled. They were both employed by multi-national, Mukai, a mobile phone company. Mukai decided to close Irish operations when they started to lose worldwide market share. Both Hanna and Sophia lost their jobs through redundancy in December 2018.
Hanna moved to America on 1st July 2019 as she was unable to find other employment in Ireland. She started work shortly after her arrival in America. She hopes to remain with that American employer until at least 2024.
In 2016 Hanna bought a house in Ireland and occupied it as her principal private residence, at that time, she took out a mortgage to fund the purchase of the house. She could not sell her house ahead of moving to America; therefore, she decided to rent it to a close friend, Julia, at market rent rates. She has not informed the Revenue Commissioners that she had rented her house – as she thought she had no need to since she was no longer living in Ireland.
Sophia remained unemployed since 2018. She is about to set up her own business manufacturing specialist fake tan disposal bins for the cosmetic industry. She will start off in business as a sole trader and if the business grows sufficiently she will transfer the business to a company. She commenced to trade on 1st November 2019; she will prepare accounts by 31st October each year. Her actual and projected profits are:
- Year ended 31/10/2020 €50,000 (actual)
- Year ended 31/10/2021 €30,000 (projected)
For the first two years of trading, Sophia rented commercial premises and leased a car. She hopes to buy an industrial building in 2023 and get it customized to include certain items of plant which will be needed for the manufacturing process.
Sophia meets you at Professional Beauty Dublin, a trade show, in RDS on the 21st October 2021; you have not been in touch with each other for over three years. When she hears that you are studying Tax at college, she immediately tells you of her plans and asks for some tax advice. Sophia also fills you in on Hanna’s move to America etc.
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