Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I move amendment No. 50:

In page 46, between lines 5 and 6, to insert the following:“Amendment of section 267M of Principal Act (tax rate applicable to certain deposit interest received by individuals)
21. Section 267M of the Principal Act is amended in subsection (2)—

(a) in paragraph (a) by deleting “and subject to paragraph (b)”, and
(b) by deleting paragraph (b).”.

This is an anomaly that arose as a result of the budget. As a result of the reduction of the higher income tax rate to 40% that was announced in the Finance Bill 2014 and on budget day, an anomaly will arise in regard to the tax rates applying to investments by individuals in foreign bank deposit accounts. This amendment will ensure that the legislation will continue to act as intended. The deposit interest earned on foreign bank deposits will be taxed at the same rate as the deposit interest retention tax rate that applies to deposit interest earned on domestic deposits, in other words 41%.