Brian Cowen (Laois-Offaly, Fianna Fail)

This morning the Minister for Finance informed the Government of his intentions to ensure the public interest directors are given the opportunity exclusively to investigate the circumstances in which such a bonus payment was paid in the Irish Nationwide Building Society. The mandate given to them was to do so within a month. He has also indicated that the members of the board will come to see him within the coming week with a view to examining the situation as he believes the board and management need to be reviewed and changed in view of what has been happening. Upon establishment of the facts we are as determined as anybody else, working within the legal means available to us, to see how the Government's intent and policy on the payment of bonuses to people in covered institutions is respected and implemented.

I am aware of the report on the second matter, which was aired this morning and the Deputy will appreciate that I cannot comment in any detail on individuals' tax affairs. These are matters between the individuals concerned and the Revenue Commissioners. As a result of cases that have come to the attention of the Revenue Commissioners involving transfers of assets between spouses and the use of reliefs provided under tax treaties with other countries, changes in the capital gains tax legislation were introduced in section 75 of the Finance Act 2006. That amendment of the principal Act removed the exemption of gains on transfers between spouses in such cases. Arrangements undertaken before the Finance Act 2006 are the subject of litigation and it would be inappropriate for me to comment further on them. The Revenue Commissioners will continue to hold the view that requires it to pursue these matters in respect of those arrangements prior to enactment of the Finance Act 2006 through litigation. When this matter came to the attention of the Revenue Commissioners, its recommendation was adopted in finance legislation and arrangements prior to the Finance Act 2006 are the subject of litigation.

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