Mary Harney (Dublin Mid West, Progressive Democrats)

I move:

(1) That, as respects the year of assessment 2008 and subsequent years of assessment, section 122 of the Taxes Consolidation Act 1997 (No. 39 of 1997) be amended in the definition of "the specified rate" in subsection (1)(a)—

(a) by substituting "5.5 per cent" for "4.5 per cent" (inserted by the Finance Act 2007 (No. 11 of 2007)) in both places where it occurs, and

(b) by substituting "13 per cent" for "12 per cent" (inserted by the Finance Act 2007 (No. 11 of 2007)).

(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution proposes an increase in the specified rate used to calculate the taxable benefit to employees from loans provided by their employers of preferential rates of interest. Where an employee receives such a loan at a rate below the specified rate, the employee is chargeable to tax on the benefit-in-kind reflected by the difference. The specified rate, which differentiates between home loans and other loans, is reviewed annually in light of the rates——

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