Dáil debates

Wednesday, 26 January 2011

Finance Bill 2011: Committee Stage

 

6:00 pm

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)

I move amendment No. 97:

In page 213, before section 76, to insert the following new section:

76.—(1) Schedule 24A to the Principal Act is amended—

(a) in Part 1 by inserting the following before paragraph 1:

"1A. The Double Taxation Relief (Taxes on Income) (Republic of Albania) Order 2011 (S.I. No. 16 of 2011).",

(b) in Part 1 by substituting the following for paragraph 2:

"2. The Double Taxation Relief (Taxes on Income) (Republic of Austria) Order 1967 (S.I. No. 250 of 1967), the Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of Austria) Order 1988 (S.I. No. 29 of 1988) and the Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of Austria) Order 2011 (S.I. No. 30 of 2011).",

(c) in Part 1 by substituting the following for paragraph 14:

"14. The Double Taxation Relief (Taxes on Income and Capital and Gewerbesteuer (Trade Tax)) (Federal Republic of Germany) Order 1962 (S.I. No. 212 of 1962) and the Double Taxation Relief (Taxes on Income and on Capital) (Federal Republic of Germany) Order 2011 (S.I. No. 31 of 2011).",

(d) in Part 1 by inserting the following after paragraph 15:

"15A. The Double Taxation Relief (Taxes on Income) (Hong Kong Special Administrative Region) Order 2011 (S.I. No. 17 of 2011).",

(e) in Part 1 by inserting the following after paragraph 22:

"22A. The Double Taxation Relief (Taxes on Income) (State of Kuwait) Order 2011 (S.I. No. 21 of 2011).",

(f) in Part 1 by substituting the following for paragraph 26:

"26. The Double Taxation Relief (Taxes on Income) (Malaysia) Order 1998 (S.I. No. 495 of 1998) and the Double Taxation Relief (Taxes on Income) (Malaysia) Order 2011 (S.I. No. 32 of 2011).",

(g) in Part 1 by inserting the following after paragraph 27A:

"27B. The Double Taxation Relief (Taxes on Income) (Montenegro) Order 2011 (S.I. No. 18 of 2011).

27C. The Double Taxation Relief (Taxes on Income) (Kingdom of Morocco) Order 2011 (S.I. No. 19 of 2011).",

(h) in Part 1 by inserting the following after paragraph 35A:

"35B. The Double Taxation Relief (Taxes on Income) (Republic of Singapore) Order 2011 (S.I. No. 34 of 2011).",

(i) in Part 1 by substituting the following for paragraph 38:

"38. The Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of South Africa) Order 1997 (S.I. No. 478 of 1997) and the Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of South Africa) Order 2011 (S.I. No. 33 of 2011).",

(j) in Part 1 by inserting the following after paragraph 41A:

"41B. The Double Taxation Relief (Taxes on Income and Capital Gains) (United Arab Emirates) Order 2011 (S.I. No. 20 of 2011).",

(k) in Part 3 by inserting the following after paragraph 1:

"1A. The Exchange of Information Relating to Tax Matters (Antigua and Barbuda) Order 2011 (S.I. No. 22 of 2011).

1B. The Exchange of Information Relating to Tax Matters (Belize) Order 2011 (S.I. No. 23 of 2011).",

(l) in Part 3 by inserting the following after paragraph 2:

"2A. The Exchange of Information Relating to Taxes (British Virgin Islands) Order 2011 (S.I. No. 24 of 2011).",

(m) in Part 3 by inserting the following after paragraph 3:

"3A. The Exchange of Information Relating to Tax Matters (Cook Islands) Order 2011 (S.I. No. 25 of 2011).",

and

(n) in Part 3 by inserting the following after paragraph 8:

"8A. The Exchange of Information Relating to Tax Matters (Republic of the Marshall Islands) Order 2011 (S.I. No. 26 of 2011).

8B. The Exchange of Information Relating to Tax Matters (Saint Lucia) Order 2011 (S.I. No. 27 of 2011).

8C. The Exchange of Information Relating to Tax Matters (Saint Vincent and the Grenadines) Order 2011 (S.I. No. 28 of 2011).

8D. The Exchange of Information Relating to Tax Matters (Samoa) Order 2011 (S.I. No. 29 of 2011).".

(2) This section applies as on and from the date of the passing of this Act.".

The purpose of this amendment is to amend Part 1 and Part 3 of Schedule 24A of the Taxes Consolidation Act 1997. This schedule lists all international tax agreements entered into by Ireland. Part 1 lists all the existing double taxation agreements and Part 3 lists all the tax information exchange agreements. As I stated earlier, many Members of the House will be familiar with these from meetings of the Committee on Finance and Public Service. The amendment adds seven countries to the list of countries in Part 1 with which the State has entered into a double taxation agreement, DTA, and eight countries or territories to the list of countries or territories in Part 3 with which the State has entered into a tax information exchange agreement, TIEA. It also adds four protocols to update the provisions of four existing double taxation agreements.

Double taxation treaties are widely regarded as critical pieces of fiscal infrastructure for developing substantial bilateral trading and investment opportunities by reducing tax impediments that might otherwise deter cross-border activity. To ensure that Irish business remains competitive and that Ireland remains an attractive destination for foreign direct investment we have been rapidly expanding our double tax treaty network. The six new double taxation agreements are with Albania, Hong Kong, Kuwait, Montenegro, Morocco, Singapore and the United Arab Emirates. The addition of these six agreements - I am sorry, as I may have misled the House; I count seven rather than six. The addition of these seven agreements will bring to 62 - or possibly 63 - the number of double taxation agreements that Ireland will have ratified.

The four protocols are under the existing double taxation agreements with Austria, Germany, Malaysia and South Africa. These protocols provide for the updating of the exchange of information articles in the Malaysian, Austrian and South African agreements. The protocol to the German double taxation convention updates the convention to reflect the current taxation laws of both countries. The protocol to the South African agreement as well as updating the exchange of information article also reflects the change in the taxation laws of South Africa with regards to taxation on dividends.

Tax information exchange agreements are also important international agreements which strengthen the ability of the revenue authorities in both countries to enforce their tax laws and thereby encourage the development of closer economic relations between both countries. The eight TIEAs are with Antigua and Barbuda, Belize, the British Virgin Islands, the Cook Islands, the Marshall Islands, St. Lucia, St. Vincent and the Grenadines and Samoa. These will bring to 17 the number of tax information exchange agreements that Ireland will have ratified.

All of these agreements have been considered and approved by the Committee on Finance and the Public Service on 15 December 2010 as part of their ratification process. The addition of these 19 countries or territories to schedule 24A is the final step in the legislative and ratification procedure that will ensure that these agreements will have the force of law.

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