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

While these two amendments have been grouped, I will speak to them individually. In regard to amendment No. 146, in general the purchase of company shares is liable to stamp duty at 1%. When stamp duty was increased from 2% to 6% in budget 2018 an anti-avoidance measure was included to ensure that the new 6% rate would also apply where non-residential property held by an entity such as a company is indirectly sold by way of a sale of the shares in the company and, effectively, the company itself. This section applies the higher - now 7.5% - rate for non-residential property to the acquisition of entities that deal in land or that secure development of land for non-residential purposes. The charge applies where the entities derive the greater part of their value from Irish property and hold land where there is little or no other activity carried on by the business, or hold and develop land for residential or non-residential purposes and where the purchase of the shares, interest or units results in a change in control of the entity and thus a change in control of the land or buildings. Not all companies deriving value from property are affected. Sales of the following types of entities should not attract the 7.5% charge, provided they are carrying on an active business: hotels; car park businesses where the land was acquired for that business; office rental businesses; and crèches.

Last year, officials in my Department prepared a report on REITs, IREFs and section 110 companies as they invest in the Irish property market. The report was presented to the tax strategy group in July last year and provided a basis for policy discussions and the amendments introduced in the Finance Act 2019. Deputy Doherty asked me a question in regard to a recommendation that was made to me. I will have to check the communications sent to me during that period by my Department and revert to him with an answer on the matter. In light of changes that I made recently, and the new measures introduced in the Finance Act 2019, I do not believe now is the time to undertake a further report in this area. I did implement significant anti-avoidance measures last year in the area Deputy Doherty refers to. I will continue to keep this area under review to see if further action is merited.