Results 21,961-21,980 of 33,049 for speaker:Paschal Donohoe

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: Section 110 of the Taxes Consolidation Act 1997 sets out the Irish regime for the taxation of special purpose companies set up to securitise assets. The tax provisions are intended to create a tax neutral regime for securitisation and structured finance purposes. Loan originations involve a section 110 company fronting for a foreign bank and either lending directly to larger more...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: The reason loan origination is being dealt with in a different way to property is that Ireland in both its domestic legislation and double tax treaties maintains the right to tax land in the State. Loans which derive their value from land in the State are an interest in land, so we also maintain the right to tax profits associated with these loans. We do not maintain the same taxing rights...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: I have answered the question. I am not answering a question that relates to an individual company. It would not be appropriate for me to do so. I am answering the question generally. In Irish legislation, as it stands, and our double taxation treaties, which we have with many countries, we maintain the right to tax land differently to how we tax loans and other forms of activity. That is...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: The Deputy is basing his argument on a particular company. I am not doubting the bona fides of the figures he is putting forward but I am not in a position to comment on them. I have explained to the Deputy the general reasons for the approach we take. It is a long-standing approach which is enshrined in our tax legislation and our double taxation treaties and, at this point in time, I am...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: We are indeed taking decisions on these matters and implementing them. I am well aware of the consequences of the growing public debate over the international and domestic taxation of massive companies. I am also well aware of the legitimacy challenges that this poses for individual taxpayers and of the consequences for our national reputation. As one might expect given the gravity of the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: If I was to participate in anything which had the immediate effect of risking the loss of Irish jobs, the first party that would condemn me would be Sinn Féin. Deputy Pearse Doherty spoke about my responsibilities. I have outlined the responsibilities I have and which Deputy Michael Noonan had before me. I have to ensure we change the tax code in a way that is compliant and consistent...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: That is the phrase the Deputy used.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: I allowed the Deputy to speak. I am simply asserting that she used the phrase "among the worst".

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: The record will show it is what the Deputy said. She made the allegation that I am looking to preserve things as they are without being mindful of the accelerated debate that is under way in regard to corporation tax across the world. At the same time, however, she acknowledged that I wish to implement the OECD view and template on matters like corporation tax. Those two statements are...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: I move amendment No. 49: In page 41, between lines 9 and 10, to insert the following: "Amendment of Chapter 6 of Part 19 of Principal Act (transfers of business assets) 26. (1) Section 597AA of the Principal Act is amended— (a) in subsection (2)(b)— (i) in subparagraph (ii), by substituting "land," for "land, or", (ii) in subparagraph (iii), by substituting...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: To answer Deputy Pearse Doherty first, his amendment is to section 28 which gives effect to my announcement on budget day that a full exemption from capital gains tax would be granted on land or buildings acquired between 7 December 2011 and 31 December 2014 and held for a period of four years commencing after they were acquired and ending seven years after that date. The...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: Yes. There will be transactions occurring next year that I believe would not have happened but for this change being made. I am trying to get to a point next year where we will have more land being released for development. My objective is to try to maximise residential development. The Deputy is correct that there are people who may have been planning to make a transaction next year...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: As I have already explained, the legal advice I have is that I cannot differentiate between different forms of land and buildings. I cannot do that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: The advice I have received from the Attorney General, and this is also the case within the European Union, is that I cannot differentiate between a land and a building.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: The Deputy will be aware of the long-standing approach in regard to the sharing of advice from the Attorney General to Government. I am not in a position to share that information.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: I will try to give some more context in terms of the legal advice I have received. The Revenue Commissioners have advised me that it is not legally permissible to narrow the focus and single out a category of land in relation to this relief. Section 604A applies to all property purchase within the European Economic Area, EEA. This provision was included in the legislation so as not to...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: I would like to make two points. I referred earlier to Section 604A of the Taxes Consolidation Act 1997. This applies to all property purchased within the EEA. In terms of interpretation of that provision, property includes buildings. In regard to the Deputy's second point regarding the tax effect of this measure, following the coming into effect of this measure next year, in conjunction...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: The Deputy said that no tax would be payable in respect of such sales.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: An additional rate of stamp duty, on top of that which currently applies, will be payable. The stamp duty rate has been tripled. While I accept the point that it is possible that transactions that were due to go ahead next year anyway will now go ahead in a more favourable environment, that will be offset, I believe, by the additional land and property that should be...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2017: Committee Stage (Resumed) (9 Nov 2017)

Paschal Donohoe: No. The Interpretation Act 2005 defines land as including, "tenements, hereditaments, houses and buildings, land covered by water and any estate, right or interest in or over land". I will supply a technical note to the committee in advance of Report Stage to provide all the background in relation to this.