Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This section is very important to me as I put a considerable amount of work into it and proposed the 20% dividend withholding tax. I understand Deputy Boyd Barrett’s concerns and I share some of them in terms of capital gains tax and the exemptions, but it is important to state that the effect of the suggested deletion would mean that the funds would pay no tax, as is currently the case. This section, for the first time, will now force them to pay tax through the 20% dividend withholding tax. If the amendment was agreed, it would leave them paying no tax. I know that is not the intention of Deputy Boyd Barrett.

I am concerned about aspects of this section, including the capital gains tax exemption, but I recognise that it is an improvement on the current situation. We will continue to try to convince the Government about the CGT exemption but I welcome the fact that for the first time the Government has tackled the fund industry and the situation whereby non-resident investors did not pay tax. I also welcome a provision which we will come to later concerning amendment No. 47 and the fact that one of the areas I had raised on Committee Stage is being addressed.

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