Recent tensions and military activity in the Straits of Hormuz involving the United States and Iran are causing major disruption across the shipping industry. Many vessels are being delayed, rerouted, or prevented from passing through the region altogether. As a result, a significant number of seafarers and mariners are experiencing unexpected changes to their rotations and work schedules.
For Irish seafarers, there is an important tax point to be aware of.
If you have effectively been forced to return to Ireland earlier than planned due to this type of geopolitical disruption, there may be scope to apply for a force majeure concession with Irish Revenue. While every case is assessed individually and there is never a guarantee of acceptance, previous cases show that Revenue can take a practical approach where circumstances are clearly outside the individual’s control.
Examples where similar applications have arisen in the past include:
- The Icelandic ash cloud disruption
- COVID-19 travel restrictions
- Security-related disruption involving North and South Korea
- Other international emergencies preventing normal travel or vessel operations
In those situations, some individuals were required to leave their work location unexpectedly and return to Ireland, which could otherwise have created Irish tax residency or taxation issues. In certain cases, Revenue accepted that the disruption was beyond the person’s control.
If you are affected by the current situation in the Gulf region, we strongly recommend that you gather and retain as much supporting documentation as possible. This should include written confirmation from:
- Your employer
- Ship management company
- Captain or master of the vessel
- Manning agency or operations team
The documentation should clearly outline:
- Why your rotation changed
- Why you were required to return home
- The dates involved
- Any restrictions or operational disruptions affecting the vessel
Good paperwork is essential if a future force majeure application needs to be made.
As always, each case depends on its own facts and circumstances, but if you are caught up in these disruptions, it is important to act early and keep records now rather than trying to reconstruct events later.
For tailored advice regarding Irish tax residency, seafarers’ allowance, or force majeure applications, contact Kevin Barry & Co. or visit Irish Seafarers Tax.
