Oireachtas Joint and Select Committees

Tuesday, 16 November 2021

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2021: Committee Stage

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I have a few genuine questions regarding the aviation industry. This section is quite interesting and is there to support the industry. I will be interested in the Minister's viewpoint on whether such a provision could provide opportunities for tax arbitrage. Has the Department conducted any risk analysis in this regard? My interest comes from the fact that this section will also apply to the aircraft leasing sector which, as we know, is in the business of not just leasing aircraft but, often, entire flight crews. I understand income tax relief only applies to jurisdictions with which we have a double tax treaty, but we have treaties with other popular low-tax leasing locations, such as Hong Kong and Singapore. Will it also apply to the Chinese tax-free special economic zones, which are also quite popular as a location for aviation leasing?

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