Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

Section 40 provides for several technical amendments to restore the tax transparent nature of certain collective investment funds formed under the Investment Limited Partnerships Act 1994. The changes are made by creating a new section 739J of the Taxes Consolidation Act 1997 which provides for the tax transparency of investment limited partnerships by including them in the definition of an investment undertaking in section 739B of the Taxes Consolidation Act.

Paragraph 6(2)(a) of schedule 1 to the Value-Added Tax Consolidation Act provides for an exemption of the management of collective investment undertakings as defined under the original Taxes Consolidation Act. The definition in section 172A includes investment undertakings. Therefore, it is not necessary to amend paragraphs 6(2) of schedule 1 to make specific reference to investment limited partnerships as defined in section 739J of the Taxes Consolidation Act to ensure the continuation of the existing VAT exemptions for those partnerships.