Results 25,721-25,740 of 33,175 for speaker:Paschal Donohoe

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (16 Nov 2021)

Paschal Donohoe: I appreciate the Deputy is requesting a comprehensive report on trans-border workers’ relief. This relief is provided for by section 825A of the Taxes Consolidation Act 1997, TCA, and generally applies in the case of cross-border workers who are Irish resident but who commute to work in another jurisdiction. The relief effectively removes the foreign employment income from a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (16 Nov 2021)

Paschal Donohoe: The reason I do not support the policy brought forward by Deputy Farrell is contained in some of the figures she read out, where she referred to the high marginal tax rates that would be faced at the levels of income that would be affected by this change. Were the personal tax credit of €1,650 to be tapered out at a rate of 5% per €1,000, or a loss of just over 8% of additional...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (16 Nov 2021)

Paschal Donohoe: The previous tax relief in respect of rent paid was abolished in budget 2011 and it ceased to be available to those who commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief be discontinued. The view of the commission then was that, in the same manner in which mortgage interest relief...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: Sinn Féin's inference is that it would not even meet them.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I move amendment No. 42: In page 54, to delete lines 23 to 25 and substitute the following: “(i) An Bord Pleanála, under section 9 of that Act, or (ii) a local authority, under section 170 of the Planning and Development Act 2000,”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: This section is an anti-avoidance provision that denies a tax deduction for interest payable on intra-group borrowings which are used to purchase assets from the connected company. I will deal in a moment with the Deputy’s question regarding how we define “connected”. It was designed to prevent companies from selling assets, such as plant or machinery, between group...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I will quickly go back to the question Deputy Farrell asked me earlier on how to define a connected company. There are two criteria for it laid down in the Finance Act of 2019. To quickly summarise, the first is that if the same person has control of both companies, or a person has control of one company and is connected with the first-mentioned person, or the first-mentioned person and...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I would be happy to look at it in the Tax Strategy Group process. The draw-down of the research and development credit for small and medium enterprises for 2019 stood at €801 million. I know that does not give a break down into microcompanies and the smallest companies that are starting up. From the figures that I have here, it looks as if the research and development credit...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: Before we do that, I wish to mention that I may bring forward an amendment on Report Stage regarding an initiative being developed by the Minister for Agriculture, Food and the Marine on a Brexit-related matter.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: Deputies may recall that in 2018, my Department produced a detailed note for the committee on the subject of both bank losses and corporation tax losses more generally. This technical note was published online and is still available. It considered in some detail the potential implications of restricting the use of losses carried forward, or the introduction of a specific time limit or...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: It is because we treat AIB and Bank of Ireland the same as we treat any other Irish bank. I see the banks as entities not just to be taxed but as ones that also have to provide credit, investment and employment to lead to the availability of more homes, jobs and investment in all parts of our country. While I can understand the attractiveness, politically, of a change in tax policy such as...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I would have thought the Deputy could recognise the value of banks being able to lend more to enable more homes to be built, and the danger if mortgage interest rates became even more expensive than they already are. Given that ours is an economy two banks have decided to leave, the ability of the banks that remain to lend more in the future, and to avoid their mortgages becoming even more...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I will respond to the concluding comment made by Deputy Doherty. It is a well-proven technique from Deputy Doherty and Sinn Féin to put words in my mouth that I did not say and then attack me for making an argument I did not make. At no point in my argument did I say the banks should never pay tax at any point in the future. I have never said that. However, I did say that, given...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I move amendment No. 75: In page 93, between lines 2 and 3, to insert the following: “Amendment of section 604 of Principal Act (disposals of principal private residence) 37. Section 604 of the Principal Act is amended by the insertion of the following subsection after subsection (14): “(15) (a) This subsection applies where an individual disposes of or of an interest in...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: That is correct.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: In those circumstances, it would depend on the change in value of the property. My officials will correct me if I have this wrong, but using the Deputy's example, if that home is worth €300,000 but had been valued at €100,000 at point of purchase by the owner, the tax would be applied on the difference between the €100,000 and the €300,000, that is, on the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: I thank the Deputy very much for his questions on this part of the Bill. The intent behind this part of the Bill is to ensure capital gains tax is applied in the way we intend. To summarise, he is concerned that by the application of an intent he supports, it might in some way legitimise or regularise an activity that he has policy concerns about. As I understand it from what he has said,...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (17 Nov 2021)

Paschal Donohoe: Yes.