Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 25:

In page 29, between lines 2 and 3, to insert the following:“17.The Minister shall within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the taxation of Real Estate Investment Trusts, examining the deductions used by REITs in computing their net profit, outlining the annual effective tax paid on their profits related to Irish property by REITs and REIT shareholders, and examining the ability of REIT shareholders to reduce their tax liabilities through double tax treaties and the CGT exemption that non-resident shareholders in REITs can avail of on gains related to the sale of their shareholdings.

The amendment asks for a report on the taxation of REITs, examining the deductions used by REITs in computing their net profits, outlining the annual effective tax paid on their profits related to Irish property by REITs and REIT shareholders and examining the ability of REIT shareholders to reduce their tax liabilities though double tax treaties and CGT exemption that non-resident shareholders in REITs can avail of on gains related to the sale of their shareholdings. I have been looking at REITs and their accounts over the past while. The level of tax they are paying is staggering. I have a couple of questions seeking clarification. The REIT regime provides tax exemption in respect of income and chargeable gains of a property rental business held within the company that satisfies a number of conditions. We know that one of those has to be that it makes distributions of not less than 85% of its annual property income. With regard to calculating that annual property income, can the Minister of State confirm if property tax is properly tax deductible for REITs when computing their annual property income?