Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

On the e-brief issued by the Revenue Commissioners, it was not in regard to a new policy. Rather, Revenue were confirming existing policy in the area. I imagine they did so in recognition of the growth of the sector. On the requirement for a withholding tax, the Deputy will be aware that the purpose of the withholding tax is to facilitate tax compliance, which as we both know has to occur across all parts of our economy. As I said on Committee Stage, I am willing to examine what would be an appropriate tax regime for this sector but only after we have concluded our work with the sector in regard to how we can better regulate it. Currently, this sector is not regulated. The European Parliament is commencing work in this area, which when completed we can use to get a better idea of what our domestic regulatory regime might look like.

In terms of sequence, we will make progress on the direction of regulation first and, as we are doing that work, we will engage with the sector on what might be a more appropriate taxation regime for it.

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