Seán Ardagh (Dublin South Central, Fianna Fail)

-----can move around very quickly. One commentator said there is no aggregation of assets between a husband and wife, so if it is a question of a €6 million house in the name of the wife, then it would not apply to the husband since it is all being done on an individual rather than an aggregated basis. Hopefully, that is not the case. It can be adjusted if necessary.

The whole idea of companies buying back their shares in order to increase the share price so that the individuals who hold them can make money through capital gains and pay a lower rate of tax than the dividends which would otherwise be payable is an excellent move. There was an article in a newspaper on Sunday about €400 million being avoided in relation to the capital gains tax on gilts futures contracts, government securities. There were two transactions in question, one where a gain was made, and a corresponding loss was then made. On the gain there was no tax because it related to government securities, but the loss could have been applied to other profits for capital gains tax purposes. I would like to know whether that occurred. I realise capital gains tax avoidance provisions are in place now, but were they not in place earlier? Was that article correct?

This budget has certain initiatives which will improve by a quantum leap the business in the International Financial Services Centre. Effectively, there are three items of note, including matters related to Islamic finance and principles of Islam under sharia law, which are to be applied to finance. The way in which this will improve the amount of business transacted is noteworthy. I understand in the Middle East financial institutions are looking to set up staging posts in Europe at the moment and Ireland could be a good place for such a set up. There is great potential in this regard.

I refer to the UCITS, undertakings for collective investments in transferable securities, to which the Minister of State, Deputy Roche, referred earlier. There will be clarity now as far as the taxation of funds managed by UCITS managing agents are concerned. If a non-resident fund is domiciled in Germany but managed in Ireland, no tax will be applied in Ireland. This is clear and allows the Irish management company to offer its services throughout the EU. Deputy Naughten referred to the remittance basis for income earned by individuals seeking highly skilled, value added individuals who could set up here, possibly in the area of sharia finance or the UCITS management business. The fact that such people may operate now, even if only on a remittance basis for one year, is commendable. All in all, this is brilliant work by a brilliant Minister for Finance and I commend it to the House.

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