Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I have given this matter the most serious consideration. The Deputy has acknowledged that the Finance Bill contains a number of measures designed to address how we tax this sector. On budget night I introduced some very significant and justified compliance measurements on the basis of issues, of which I am now fully aware and on which I have been briefed. Capital gains tax is not the appropriate tax for these entities because we tax on the basis of the income that comes from them. For that reason, the approach we have used on dividend withholding tax is the appropriate one. By virtue of what happened on budget night, we have implemented very significant and needed changes. Therefore, I do not believe a further report is needed, but, as I stated on budget day, my officials will keep the matter under review. They will continue to apprise me or the Minister of the day on whether further changes are needed. Since we last discussed this issue last year, a significant report was published by the tax strategy group, while my Department has done a lot of work on the scale of these funds and the effect they are having, which we have made publicly available. During last night's debate the Deputy and I differed on the scale of that effect, but I still believe it is significant and merits evaluation. While I do not believe a further report is needed, given the work done by the tax strategy group, if the Deputy or the committee wants me or my Department to do further work on the issue, we will do so, but I do not believe the Finance Bill is the appropriate place in which to commit to producing reports. However, I acknowledge this is virtually the only kind of amendment the Deputy could have tabled.