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

I move amendment No. 63:

In page 41, to delete lines 22 and 23 and substitute the following: "(3) This section shall come into operation on such day as the Minister for Finance may appoint by order.".

To respond to the question Deputy Naughten raised with me earlier, the bands to which he referred are now published in section 32 of the Bill. The information is contained there.

Amendment No. 63 relates to the commencement of section 15 of the Bill. Section 15 updates Part 35A of the Taxes Consolidation Act 1997 to provide for transfer pricing. In particular, section 15 updates the definition of a relevant person in section 835A and replaces section 835E, which provides for an exclusion from transfer pricing rules for certain domestic non-trading arrangements.

Following the publication of the Finance Bill, it became apparent that certain bona fide domestic non-trading arrangements were not specifically provided for within the exclusion. I brought forward a number of Committee Stage amendments to extend the exclusion to additional domestic non-trading arrangements providing relevant conditions were satisfied. It has since emerged that while amendments brought forward on Committee Stage will extend the exclusion in certain circumstances, there may be other circumstances that possibly should also be covered by the exclusion. The non-exclusion of certain bona fide domestic non-trading transactions may be problematic for certain Irish businesses that have intergroup arrangements and are subject to transfer pricing rules. The amendment will allow section 15 to be subject to a commencement order. This will allow the officials, in consultation with officials of the Revenue Commissioners, sufficient time to consider further, prior to commencing the legislation, the scope and application of section 15.

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