Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I also thank the Minister and his officials for the note we received on this new section, which is a significant recommendation. I have no difficulty with strengthening the anti-avoidance provisions. Clearly, the increase in the stamp duty rate would have created a very strong financial incentive for transactions to be structured in a manner which would avoid the 6% rate.

I will ask just two questions. First, regarding the question of double taxation, it is my understanding that if the home jurisdiction of the company also applies stamp duty, the company will have to pay stamp duty in Ireland and in that home jurisdiction, therefore paying on the double. We have double tax arrangements with the UK but, as I understand, not with other countries regarding stamp duty. Will the Minister clarify this point? Second, regarding enforcement, this section will apply to companies outside of Ireland, and there is some mutual recognition of tax judgment rules. However, the likelihood is that change will be a burden on the compliant, and the consequences may not have been fully worked out. Regarding enforcement for companies that are based abroad and are incorporated and resident abroad, how will the enforcement work its way through?

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