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

As we go forward, an IREF will have to file a return regardless of whether it believes an event has happened that requires it to pay tax. I am sure the Deputy is probably clear on that. It is worthwhile to put it on the record that this change is being made.

I would like to speak about the contribution that is made by the funds that are active in our State. We are debating the funds in question. It is worth acknowledging during this debate that 13 funds currently have planning permission for 2,200 homes in this country. The same funds intend to apply for permission to build a further 2,300 homes. Such funds are playing a role in the supply of housing output and rental property by a diverse set of different participants and actors. That is why I believe they play an important role. I want this role to continue in the future. I am aware of the issues of scale we need to reflect on.

I will conclude by emphasising that the Finance Bill contains an array of compliance measurements. The Deputy and I differ on what we believe the appropriate tax should be. I believe the appropriate tax is the dividend withholding tax because it applies to income. In return for taxing the income from REITs and IREFs, there are requirements upon the REITs and IREFs that do not apply to other companies. That is why I believe the dividend withholding tax is the appropriate tax mechanic we should be using on them. This Finance Bill has many measures in place to ensure the mechanic in question can be accurately and well used by Revenue.