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

I thank Deputy Burton for acknowledging the fact that we have tried to provide as much information as possible where we can. In previous amendments in which there were requests for reports to provide information within a certain period of time, we have tried to be able to do that where possible. It is not a question of principle; it is a question of what information it is possible to provide.

Speaking to Deputy Doherty's amendment, we debated it at length on Committee Stage. As a result of the debate that we had on Committee Stage, changes have been made since then to the amendments that are now coming through on Report Stage. As I previously noted, in amendment No. 47 we are restricting the ability of non-residents to use closely-held funds to avoid paying Irish tax on capital gains on Irish property. This is in order to ensure that the IREFs cannot be used for tax planning by investors who have influence or control over the IREF.

On the issue of all other funds, the five-year CGT exemption period is being legislated for to distinguish between funds that flip a property and are in it for the short-term gain and those that hold for longer periods and are therefore a more stable presence in the market. In the longer term, this will lead to a more sustainable and secure property market for both investors and property tenants, while generating regular and reliable tax revenues for the Exchequer from the taxation of the rental profits. The IREF provisions do not encompass any tax forgone and, therefore, there would be no additional tax take compared to the current position. That speaks to the questions raised by Deputy McGrath.

I am advised by the Revenue Commissioners that the return required from IREFs will require details of any capital gains distributed without the application of IREF withholding tax. Revenue will monitor this to ensure that it is not being used by closely-held funds to avoid Irish tax on Irish property transactions. Should any inconsistencies be found, they will be thoroughly examined by the Revenue Commissioners and acted upon as necessary. Finally, as the first returns by the IREFs will not be due until 30 June 2018, it would not be possible to prepare the report requested in the proposed amendment. Therefore, I cannot accept the amendment.

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