Results 25,021-25,040 of 27,019 for speaker:Michael Noonan

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I move amendment No. 51:In page 21, between lines 28 and 29, to insert the following:“(a) in section 784—(i) by inserting the following after subsection (2E):“(2F) Notwithstanding any other provision of this Chapter, a retirement annuity contract shall not cease to be an annuity contract for the time being approved by the Revenue Commissioners where, notwithstanding...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: Above €2 million it will be 6% regardless of age. Below €2 million it can be 4% or 5% depending on the age. Below 70 is 4% and above 70 is 5%.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: The primary purpose of the amendments being introduced is to reduce the potential for tax planning to avoid a tax which is legitimately owed. The primary purpose of the provision going forward is to stop this tax planning in its tracks and to make sure it would be financially irrational for an individual to allow a situation to arise where he or she does not vest his or her PRSA or RAC on or...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: That is because legally a person does not have to vest under the contract until the age of 75.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: The imputed distribution regime only kicks in when benefits have been drawn down. The avoidance scheme was that they were not drawing the benefits at all so the imputed tax did not kick in.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: Under the contract and under the scheme, 75 is the age at which benefits have to be drawn down. That is the latest stage. That is where the figure of 75 comes from. It might be a good idea to have a technical briefing of colleagues before Report Stage because it is very complex and I can ensure we can make the arrangements for interested colleagues to get briefed on the technicalities of this.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: If the recipient is under 21, it is subject to capital acquisitions tax at normal rates. If they are over 21, there is a ring-fenced rate of 30%.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I do not know what the origin of it was when the scheme was legislated for and put in place but I assume the distinction is between dependency and independence. The age of maturity was deemed to be 21 and a different set of rules applied below that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: The purpose of the scheme, as designed, was that distributions would take place by the age of 75. Tax planning arrangements to defer that to a later age are not in accordance with the purpose of the scheme, as designed. It allows for tax planning and the avoidance of tax, and this is to deal with that issue.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I move amendment No. 54:In page 22, to delete lines 8 to 15 and substitute the following:"(a) the PRSA administrator—(i) on or before 31 March 2017—(I) commences payment of an annuity to the PRSA contributor, (II) pays a lump sum to the PRSA contributor, in accordance with section 787G(3)(a), (III) makes assets of the PRSA available to the PRSA contributor, or (IV) transfers...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I move amendment No. 55:In page 22, between lines 15 and 16, to insert the following:"(c) in section 787O—(i) in subsection (1)—(I) in the definition of "uncrystallised pension rights", by substituting "on that date;" for "on that date.", and (II) by inserting the following definition:" 'vested RAC' means a relevant pension arrangement of a kind referred to in paragraph (b) of...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I move amendment No. 58:In page 23, line 4, to delete "on that date" and substitute "on the date of passing of that Act".

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I move amendment No. 59:In page 23, to delete line 9 and substitute the following:"of 'vested PRSA' in section 790D(1), (bc) the relevant pension arrangement becomes a vested RAC within the meaning of section 787O(1),",".

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I move amendment No. 62:In page 23, to delete line 17 and substitute the following:"Finance Act 2016, on the date of passing of that Act,(dc) where the benefit crystallisation event is an event of a kind referred to in paragraph 2(bc), the aggregate of so much of the cash sums and the market value of such of the other assets representing the individual's rights under the relevant pension...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: Section 118(5A) of the Taxes Consolidation Act 1997 exempts employees and directors from benefit-in-kind taxation where an expense has been incurred by an employer on the provision.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: Actually, I do not think I am. I think we are taking a run at it.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: The exemption also includes passes for travel on commuter ferry services which operate within the State in respect of journeys which begin and end in the State. The exemption does not extend to car parking charges which are purchased as part of a combined travel pass which includes car parking charges, nor does it include ad hocparking charges, such as daily charges. While I could agree to...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: -----cycle to the station, and one will get the double tax benefits.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: I will speak first to amendment No. 66 which seeks a report on options for the abolition of LPT. LPT is designed to provide a more sustainable system of funding for local government and place the provision of local services on a sounder financial footing. It has led to greater transparency and accountability at a local level and it is certain that the stronger democratic relationship and...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (10 Nov 2016)

Michael Noonan: As well as accepting Dr. Thornhill's proposal that the revaluation date would be deferred to 2018 or 2019, I accepted and enacted other proposals and amendments as well. For example, proposals regarding the treatment of property with pyrite defects and properties adapted for persons with disabilities were enacted in the Finance Act 2015. I know there are other problems in the quality of...