81. Deputy Pearse Doherty asked the Minister for Finance if he has scoped the potential impact of proposed United States tax changes to the taxation of intellectual property on the State; the level of research his Department or other Departments or agencies are involved in to quantify the possible impact here; and if he will make a statement on the matter. (Question 53289/17 asked on 13 Dec 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The proposed changes in the US tax code currently being debate by the US Congress are relevant to all countries that trade with the United States.  The importance of US tax rules is reflected in the fact that the proposed changes were discussed by European Finance Ministers at the recent ECOFIN meeting. 
The proposed legislation has not yet been finalised or signed into law at this point in time.  The full implications of US tax reform for Ireland, ...

33. Deputy Pearse Doherty asked the Minister for Finance his plans to amend his proposal to cap the write-off of intangible assets to 80% to include all assets which claim annual write downs; and his views on whether his proposal as structured could allow large multinationals to pay minimal or no corporation tax. (Question 44716/17 asked on 24 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The recent ‘Review of Ireland’s Corporation Tax Code’, recommended that in order to ensure some smoothing of corporation tax revenues over time, that the limitation on the quantum of relevant income against which capital allowances for intangible assets and any related interest expense may be deducted in a tax year be reduced to 80%.  
Therefore, on foot of this recommendation, I introduced the cap in Budget 2018, effective from midnight, 11th Oct...

35. Deputy Pearse Doherty asked the Minister for Finance his plans to introduce measures to level the playing field in the property market that would stop investors using tax efficient structures, including IREFs and REITs and large multinational companies from pricing ordinary first-time buyers and families out of the market, as evidenced from investors being the main driver of cash sales in the property market accounting for more than 50% of transactions. (Question 44717/17 asked on 24 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): A Real Estate Investment Trust or REIT is a quoted company, used as a collective investment vehicle to hold rental property. A REIT is exempt from corporation tax on qualifying income and gains from rental property, subject to a high profit distribution requirement to. A REIT provides the same after-tax returns to investors as direct investment in rental property, by eliminating the double layer of taxation at corporate and shareholder level which w...

156. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised if a cap was introduced for companies to allow for a maximum write off of depreciation against income of percentages (details supplied) per annum regarding capital allowances on intellectual property. (Question 39306/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 156, 157 and 174 together.
The Review of Ireland’s Corporation Tax Code, which was undertaken by an independent expert, Mr. Seamus Coffey, was published on Tuesday, 12 September 2017.  In the Review, Mr. Coffey makes a number of recommendations in respect of Ireland’s corporation tax code, including a recommendation that a cap of 80% should apply to the amount of capital allowances for intangible assets, and any rela...

157. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised if the 2014 rules of taxation for capital allowance of intellectual property were reinstated with regard to capital allowances on intellectual property. (Question 39307/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 156, 157 and 174 together.
The Review of Ireland’s Corporation Tax Code, which was undertaken by an independent expert, Mr. Seamus Coffey, was published on Tuesday, 12 September 2017.  In the Review, Mr. Coffey makes a number of recommendations in respect of Ireland’s corporation tax code, including a recommendation that a cap of 80% should apply to the amount of capital allowances for intangible assets, and any rela...

174. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised if a cap was introduced for companies to allow for a maximum write off of annual depreciation of intangible assets of percentages (details supplied) of annual income. (Question 39521/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 156, 157 and 174 together.
The Review of Ireland’s Corporation Tax Code, which was undertaken by an independent expert, Mr. Seamus Coffey, was published on Tuesday, 12 September 2017.  In the Review, Mr. Coffey makes a number of recommendations in respect of Ireland’s corporation tax code, including a recommendation that a cap of 80% should apply to the amount of capital allowances for intangible assets, and any rela...

109. Deputy Pearse Doherty asked the Minister for Finance the way in which windfalls gained through Central Bank mandated redress schemes such as for tracker mortgages are treated for the purposes of income tax; and if he will make a statement on the matter. (Question 37055/17 asked on 11 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I understand that the Central Bank has clearly set out its expectations of lenders to provide appropriate redress and compensation to affected customers in its document “Principles for Redress” dated December, 2015. 
The principles provide, inter alia, that “Any tax liability that impacted customers may incur as a result of the relevant issue in or respect of any redress, compensation or other payment made to impacted customers are to be discharged ...

119. Deputy Pearse Doherty asked the Minister for Finance the reason paternity benefit is tax-free while maternity benefit is taxable; and if he will make a statement on the matter. (Question 35690/17 asked on 26 Jul 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that paternity benefit is chargeable to income tax in the same way as maternity benefit.  Taxation of paternity benefit was provided for by way of an amendment to Section 126(2A) of the Taxes Consolidation Act 1997, which was contained in section 36 of the Paternity Leave and Benefit Act 2016. 
 ...

121. Deputy Pearse Doherty asked the Minister for Finance the estimated additional revenue that would be raised by increasing the bank levy by ten percentage points and by 10%; and if he will make a statement on the matter. (Question 32106/17 asked on 11 Jul 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): In Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology. This took place during 2016, including a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding levy rate, i...

154. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the exemption from dividend withholding tax for European Economic Area, EEA, regulated funds regarding dividends paid by Irish real estate funds, IREFs; if his attention has been drawn to the large number of EEA funds that hold property here through IREFs, particularly British and German funds; the number of EEA funds with shareholding in IREFs that are exempt from dividend withholding tax; and if he will make a statement on the matter. (Question 29676/17 asked on 27 Jun 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that only certain Irish and EEA funds (including both pension funds and investment funds) may receive distributions from IREFs without the operation of IREF withholding tax.
 A fund, whether Irish or EEA, can receive distributions gross provided:
1. The fund is not a fund which is under the control of its investors or anyone connected with its investors, and which was put in place to avoid a charge to IREF withholding tax ari...

164. Deputy Pearse Doherty asked the Minister for Finance the tax treatment regarding the distribution of the value of the fund to non-resident investors in the event of an Irish real estate fund being liquidated with assets valued at greater than the market value of their cost. (Question 30041/17 asked on 27 Jun 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that Irish Real Estate Funds (IREFs) must operate IREF withholding tax on the happening of certain taxable events.  This includes the cancellation, redemption or repurchase of units as a result of liquidation.
The amount on which the IREF withholding tax is operated is the portion of any amounts so distributed which relate to Irish property profits.  Any difference between the market value of the Irish property assets on liqu...

139. Deputy Pearse Doherty asked the Minister for Finance if he will address a matter (details supplied) with regard to a share merger; and if he will make a statement on the matter. (Question 22714/17 asked on 16 May 2017 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I am not in a position to discuss the structure or tax affairs of individual companies.  
In the 2016 Finance Act I introduced the Irish Real Estate Fund (IREF). IREFs are investment undertakings (excluding UCITS) where 25% of the value of that undertaking is made up of Irish real estate assets.
IREFs must deduct a 20% withholding tax on certain property distributions to non-resident investors.  The withholding tax will not apply to certain categori...

140. Deputy Pearse Doherty asked the Minister for Finance his plans to revise the favourable tax treatment, and in some cases exemptions, to taxes in the cases of retail estate investment trust Irish collective asset management vehicle and qualifying investor alternative investment fund that have invested in housing here in view of recent CSO data which shows that REITs and private equity companies have purchased more than a fifth of the housing stock in Dublin over the past two years (details supplied); and if he will make a statement on the matter. (Question 20948/17 asked on 03 May 2017 - Tax Code)

Minister for Finance (Deputy Michael Noonan): A Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. A REIT generally has a diverse ownership requirement, so no one person or group of connected persons can control the REIT. REITs originated in the USA in the 1960s, and aspects of the REIT model have now spread to become a globally recognised investment standard in over 35 countries worldwide, including the majority of the wor...

158. Deputy Pearse Doherty asked the Minister for Finance his views on the bespoke legal structures in place here for some investment funds that are being used by funds that are not tax liable and do not employ significant workers here; and if he will make a statement on the matter. (Question 18268/17 asked on 11 Apr 2017 - Tax Code)

Minister for Finance (Deputy Michael Noonan): The normal tax treatment afforded to Irish collective investment funds is that the funds invested are allowed to grow on a tax-free basis within the fund. The income is then taxed at the level of the investor rather than the fund, as is standard international practice. The broad rationale for exempting such funds from direct taxation is to facilitate individuals to invest collectively, without suffering double taxation (that is, taxation both withi...

159. Deputy Pearse Doherty asked the Minister for Finance the consideration that has been given to the introduction of a levy on funds based on the Luxembourg model; and if he will make a statement on the matter. (Question 18269/17 asked on 11 Apr 2017 - Tax Code)

Minister for Finance (Deputy Michael Noonan): The normal tax treatment afforded to Irish collective investment funds is that the funds invested are allowed to grow on a tax-free basis within the fund. The income is taxed at the level of the investor rather than the fund, as is standard international practice. The ‘Gross Roll Up’ regime is the term applied to the mechanism whereby investment funds are not subjected to taxation on their income and gains within the fund. That allows the income o...

186. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would accrue from increasing the air travel tax from €0 to €3 in 2018; his plans with regard to increasing the air travel tax in 2018 and 2019; and if he will make a statement on the matter. (Question 9826/17 asked on 28 Feb 2017 - Tax Code)

Minister for Finance (Deputy Michael Noonan): From 28 February 2012 to the 31 March 2014 the rate of Air Travel Tax (ATT) was charged at €3 per passenger departing from an Irish airport. The year 2013 was the last calendar year where this tax was collected, yielding €34.9m in the full year.
In the absence of any certainty on the number of passengers departing from Irish airports in 2018 and 2019, the revenue that the introduction of an ATT of €3 would yield is estimated to be of the order of be...

145. Deputy Pearse Doherty asked the Minister for Finance if nursing homes and primary care centres here owned by Irish Real Estate Funds, IREF, will be classified as IREF assets and accordingly subject to withholding tax on distributions related to their ownership regarding the new withholding tax applied for distributions to certain non-resident investors from IREFs; and if he will make a statement on the matter. (Question 9376/17 asked on 23 Feb 2017 - Tax Code)

Minister for Finance (Deputy Michael Noonan): In the 2016 Finance Act I introduced the Irish Real Estate Fund (IREF) legislation to address the issue of non-resident investors, who have been investing in Irish property through fund structures, avoiding a charge to tax on profits arising from Irish real estate.  
An IREF is an investment undertaking in which 25% or more of the value of the assets is derived from IREF assets or where it is reasonable to consider that the main purpose or one of the...

279. Deputy Pearse Doherty asked the Minister for Finance his plans to legislate to impose penalties for enablers of offshore tax evasion or non-compliance as happened recently in Britain (details supplied); his views on the suitability of that legislation to Irish law; and if he will make a statement on the matter. (Question 1294/17 asked on 17 Jan 2017 - Tax Code)

Minister for Finance Deputy Michael Noonan: I am advised by Revenue that subsection (1A) of section 1078 of the Taxes Consolidation Act 1997 makes it a criminal offence for a person to be knowingly concerned in the fraudulent evasion of tax by another person, to be reckless as to whether or not the person is concerned in facilitating such evasion, or to be knowingly concerned or reckless about a person committing a specific Revenue offence of a kind specified in subsection (2) of section 1078. ...

329. Deputy Pearse Doherty asked the Minister for Finance the total net total amount of dividend withholding tax collected in relation to Irish dividends paid to non resident corporate or individual investors in each of the years 2004 to 2015, in tabular form; and if he will make a statement on the matter. (Question 1926/17 asked on 17 Jan 2017 - Tax Code)

Minister for Finance Deputy Michael Noonan: I am advised by the Revenue Commissioners that the breakdown sought by the Deputy, of Dividend Withholding Tax (DWT) collected in relation to Irish dividends paid to non-residents, is not separately available due to the manner in which the information is recorded.
The following table may be of interest to the Deputy. This table sets out the Annual amount of DWT collected for the years 2004 to 2015.
 DWT Net Receipts Year €M 2015 600 2014...

114. Deputy Pearse Doherty asked the Minister for Finance if the Revenue Commissioners are currently examining any other similar scheme of co-operatives involving shares given by co-ops to members and not taxed appropriately, which they intend to categorise as remuneration received by employees or self-employed contractors, in view of the recent tax assessments raised by the Revenue Commissioners regarding members of a co-op (details supplied) on the taxation of shares in the co-op received by members, in conjunction with milk received by the co-op from them and now being assessed to tax as trading income; if so, the details of same; and if he will make a statement on the matter. (Question 40527/16 asked on 16 Dec 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): This is a matter for the Revenue Commissioners and, as the Deputy will be aware, Revenue is statutorily independent in the exercise of their functions. This independence, which dates back to the establishment of the Revenue Commissioners in 1923, is seen as critical to maintaining the integrity of the taxation system and forms a key pillar of Revenue’s Governance framework.
I am advised by the Revenue Commissioners that their current compliance inter...

162. Deputy Pearse Doherty asked the Minister for Finance if dividend withholding tax, DWT, is exempted under tax legislation, Revenue Commissioners guidance and the Ireland-Malta double tax treaty, in the circumstances in which the recipient of the dividend, shareholder 29.9%, is a Maltese tax resident shareholder with a 29.9% shareholding in the Irish resident company that is quoted on the Irish Stock Exchange (details supplied); and if he will make a statement on the matter. (Question 39635/16 asked on 13 Dec 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 162 to 164, inclusive, together.
The primary purpose of Dividend Withholding Tax (DWT) is to collect tax at source from dividend payments and other distributions made by Irish resident companies to Irish resident individuals who are chargeable to income tax on such distributions (with a credit allowed for DWT deducted).
The legislation dealing with DWT, which is contained in Chapter 8A of Part 6 of the Taxes Consolida...

163. Deputy Pearse Doherty asked the Minister for Finance if DWT is exempted under tax legislation and Revenue Commissioners guidance in the circumstances in which the recipient of the dividend, shareholder 15%, is an Irish investment fund that is regulated by the Central Bank with a 15% shareholding in the Irish resident company that is quoted on the Irish Stock Exchange (details supplied); and if he will make a statement on the matter. (Question 39636/16 asked on 13 Dec 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 162 to 164, inclusive, together.
The primary purpose of Dividend Withholding Tax (DWT) is to collect tax at source from dividend payments and other distributions made by Irish resident companies to Irish resident individuals who are chargeable to income tax on such distributions (with a credit allowed for DWT deducted).
The legislation dealing with DWT, which is contained in Chapter 8A of Part 6 of the Taxes Consolida...

164. Deputy Pearse Doherty asked the Minister for Finance if DWT is exempted under tax legislation and Revenue Commissioners guidance in the circumstances in which the recipient of the dividend, shareholder 15%, is an Irish limited company with a 15% shareholding in the Irish resident company that is quoted on the Irish Stock Exchange (details supplied); and if he will make a statement on the matter. (Question 39637/16 asked on 13 Dec 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 162 to 164, inclusive, together.
The primary purpose of Dividend Withholding Tax (DWT) is to collect tax at source from dividend payments and other distributions made by Irish resident companies to Irish resident individuals who are chargeable to income tax on such distributions (with a credit allowed for DWT deducted).
The legislation dealing with DWT, which is contained in Chapter 8A of Part 6 of the Taxes Consolida...

192. Deputy Pearse Doherty asked the Minister for Finance with regard to his Department’s projected yield of €50 million in 2017 from section 110 and funds changes, the portion of this expected yield that relates to section 110 changes and the portion that relates to funds changes; the details of the proposed fund changes; and if he will make a statement on the matter. (Question 30744/16 asked on 18 Oct 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 188 and 192 together.
In view of the proposed changes to be introduced to Section 110 TCA 1997 in the Finance Bill 2016 Revenue undertook an examination of the financial accounts of a number of Section 110 companies to determine what the potential yield from any proposed changes might be.
The figure of €50 million is largely based on the potential profits made on a sample of mortgages valued at circa €1 billion held b...

243. Deputy Pearse Doherty asked the Minister for Finance the effect on gross domestic product or likely effect of the move by a company (details supplied) to domicile here; and if he will make a statement on the matter. (Question 24988/16 asked on 16 Sep 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 243 and 244 together.
I will not comment on company specific developments.
On the more general point, it is clear that Irish economic aggregates i.e. GDP and GNP, have been heavily influenced by corporate restructuring and a number of balance sheet reclassifications in recent years. 
In particular, beginning in 2008 a number of large multinational corporations have re-located their corporate headquarters to Ireland. T...