Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This section of the Bill amendments paragraph (6)(1)(a) of Schedule 1 of the VAT Consolidation Act. That paragraph provides for the VAT exemption on transferring or otherwise dealing in stocks, shares, debentures and other securities and other documents establishing title to goods. The amendment is a technical correction to delete the word "issuing" from paragraph (6)(1)(a) of Schedule 1 of the VAT Consolidation Act. The issuing of shares is already outside the scope of VAT so having it referred to in the exemption is incorrect and of no benefit or meaning. Subsequent dealings in shares by way of buying, selling, transferring, etc., is within the scope of VAT, but under paragraph (6)(1)(a) it is regarded as transferring or dealing in shares and thus is covered by the exemption. This amendment will ensure our VAT legislation correctly reflects the directive and EU case law. This is regarded by Revenue as a tidying-up because the reference to the exemption is incorrect and has no benefit or meaning.