Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I move amendment No. 45:

In page 41, to delete line 39, and in page 42, to delete lines 1 to 4 and substitute the following:“25.(1) Section 29 of the Principal Act is amended in subsection (1A)(c)(i) by inserting “or other assets (apart from relevant assets)” after “money”.”.

These amendments relate to sections 25 and 27 of the Bill as amended on Committee Stage. They were included in the Finance Bill to strengthen the existing capital gains tax anti-avoidance measures in sections 29 and 980 of the Taxes Consolidation Act 1997 in respect of the exclusion from the charge to capital gains tax for non-residents who dispose of shares or securities that derive their value from Irish land, provided they are quoted shares. However, following publication of the Bill it was pointed out that there are likely to be unintended consequences arising from these amendments as they affect bonds as well as shares. It has now been ascertained that they could impact negatively on some financial services activities because having a capital gains tax charge on debt is out of keeping with international norms. For this reason, paragraphs (a) of section 25(1) and section 27(1) of the Bill as amended on Committee Stage are being deleted. Given the issues raised and potential unintended impact, it was not possible to develop an appropriate solution in the time allowed. It was, therefore, considered more prudent to delete rather than amend the relevant provisions. The Department of Finance and the Revenue Commissioners will revisit the specific anti-avoidance issue with a view to it being considered for inclusion in the Finance Bill 2018.

See this speech in context