Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

Section 22 introduces a new withholding tax on non-resident investors investing in property in the State. It will mean more money coming into the Exchequer by capturing an activity where we have taxing rights. Amendment No. 47 removes from section 22 the ability of an investor who has influence or control over an IREF to receive a distribution of capital gains without the operation of the new 20% withholding tax. The purpose of this amendment is to ensure that the IREF cannot be used for tax planning and is designed to protect the Irish tax base. This is a further improvement on the previous section, as was drafted and debated in committee with Deputy Doherty and others, so that we achieve what we intend to achieve with this section, namely, a new source of taxation for the Exchequer.

In answer to Deputy Donnelly's points, funds do not pay capital gains tax. IREFs will apply withholding tax on the gains distributed within five years and to the personal portfolio where it has been operated in the IREF.

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