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

I move amendment No. 43:

In page 57, to delete lines 6 to 8 and substitute the following:

"(3) Section 172C of the Principal Act is amended⁠—

(a) in subsection (2), by the insertion of the following paragraph after paragraph (bc):

"(bd) subject to subsection (4), a scheme which⁠—".

As part of this year's Finance Bill, amendments are being made to provisions of this section relating to the taxation of company distributions to ensure they operate in line with European law. One such amendment is to section 172C of the Taxes Consolidation Act 1997 in respect of withholding tax exemptions. Section 37 introduces a new withholding tax exemption to resolve an issue whereby pension schemes based outside the EU but in jurisdictions with which Ireland has a tax information exchange agreement and which are comparable with an Irish pension scheme but which are not currently treated comparably with an Irish pension scheme. Separately, new withholding tax protections that will apply on certain outbound payments are also being introduced in section 36 of the Bill. It has been determined that the two provisions do not properly interact. Therefore, I have brought forward amendment No. 43 to ensure that the new measures to apply to outbound payments of interest, royalties and distributions operate in priority to the new exemption provided in section 172C.

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