Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 58:

In page 90, line 20, to delete “property profits.”.

Four of the amendments are technical in nature and I shall address them together. Amendment No. 58 deletes the words "property profits" from page 90, line 20, as these words are unnecessary and were included due to a printing error. Amendment No. 59, on page 90, line 21, and amendment No. 62, on page 95, line 36, are necessary to ensure that the language of the provisions is consistent with previous legislation in this regard.

Amendment No. 64 deletes the words "as the case may be", because the words are unnecessary in order to be consistent with the language used in the previous provisions in this regard.

I am also putting forward for consideration two further amendments to ensure that the legislation functions as intended and is consistent with other existing tax provisions. The tax exemption for gains arising on the disposal of an investment property does not apply where a REIT acquires a property, develops it at a cost exceeding 30% of its value, and disposes of the property within three years. Amendment No. 60 is a technical amendment to ensure this restriction operates equally in cases where the property was acquired by the company before it elected to become a REIT.

Amendment No. 61 inserts an additional subsection (5) into the proposed section 705J, as provided for in section 39 in the Finance Bill as published. This is to provide that institutional investors who invest in a REIT as part of their trading activities will be taxable at the 12.5% trading rate of corporation tax in respect of dividends received from a REIT.