Results 26,141-26,160 of 27,945 for speaker:Michael McGrath

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I understand there is agreement on them.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I move amendment No. 19: In page 42, between lines 37 and 38, to insert the following: “(d) Paragraph (c)(vi)(in so far as it inserts subsection (16) in section 766C of the Principal Act) and paragraph (d)(v)(in so far as it inserts subsection (15) in section 766D of the Principal Act) of subsection (1)shall apply on and from the date of the passing of this Act.”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I have a short note which I will read and then I will answer some of the specific questions raised. This section amends sections 766, 766A, 766C and 766D of the Taxes Consolidation Act 1997, which relate to the research and development corporation tax credit regime. The purpose of the amendments is to maintain Ireland’s support for quality employment and investment in research and...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: Is that tax expenditure?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I will address the questions raised and that might lead to further questions or answer some. The most recent figures we have for the cost are the figures that Deputy Boyd Barrett referred to for 2021. Some €753 million was spent across 1,629 companies. September 2023 was when the final returns for 2022 would have come in. In April 2024, the figures for 2022 will be finalised and...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: This is all published and we can share it. About another third have between 11 and 49 employees. An awful lot of very small or mid-sized companies are claiming this particular relief. It is important to remind ourselves what it is. The qualifying expenditure definitions are quite strict, as one would expect. It is a significant tax expenditure. The qualifying activities must satisfy all...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I will address a number of the points and I will return to that specific point. Deputy Boyd Barrett asked about the amount of the cost that is accounted for by the larger companies. In the publication last April, the only category of large companies, let us say, is those with 250 or more employees. Of the €753 million, €559 million of it is claimed by those 200 companies....

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: It is €559 million of €753 million being in respect of companies employing 250 employees or more.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: Correct.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: On the additional cost of €27 million, I will talk about the split of it first of all. For companies outside pillar 2 scope, it is approximately €13 million. For companies in scope of pillar 2 it is €14 million. The cost of the 5% increase before the pillar 2 top-up tax is €137 million. Then €123 million of that is essentially got back because this is...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: The cost of the 5% increase in the credit before the pillar 2 top-up tax is €137 million. Then, by means of additional revenue, which is earned by the State because the increase is taxable, a 15% top-up tax is applied, which gives €123 million, so they net off, giving a net cost of €14 million.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: We have a table that shows the flow of how the net costings were arrived at. I am happy to share that with the committee. It goes through the number of claimant companies, the credit of 25%, the estimated costs at 30%, the cost of the 5% increase and the amount we get back by means of the 15% top-up tax. In effect, the entire credit now becomes taxable in respect of companies that are...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: My understanding is that a share of the companies in the bracket of 50 to 249 employees would be in the scope of pillar 2 and that the cost of the €13 million in respect of those outside the scope is primarily the first two rows in the table at which I believe the Deputy is looking. I am happy to share the basis of our costing. It is a costing that has been done between the Revenue...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I think Deputy Boyd Barrett is missing the bigger picture with this section and what it does. It maintains the existing benefit for the pillar 2 companies. The big winners in this section are the companies not in-scope of pillar 2. They benefit from the increase in the rate of the research and development tax credit, and they benefit from the doubling of the first year payment threshold...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: We will write to the committee on the costing. Given that the research and development credit is becoming taxable for in-scope companies in respect of pillar 2, it is reasonable to offset that and net it off. We will set out the basis. The costing is not something I was involved in directly. We will explain the figures and how they are arrived at.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: Yes.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: The amendment seeks a report on the establishment of a wealth tax commission to be provided within six months of the passing of the Bill into law. As Deputy Doherty is aware, wealth can be taxed in a variety of ways, many of which are already levied here in Ireland. These include capital gains tax and capital acquisitions tax, which are, in effect, taxes on wealth in that they are paid by...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I am of course aware of the Committee on Budgetary Oversight’s recent report on the section 481 film tax credit and I note that the amendments put forward by the Deputies stem from the recommendations contained in that report. On copyright, I would note that copyright law falls within the remit of the Department of the Enterprise, Trade and Employment. Copyright is relevant for...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: Before we conclude, could I add a couple of points for Report Stage?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: With regard to the dividend withholding tax provisions in section 36, which are being introduced to comply with EU law requirements, I wish to advise committee members that I will be bringing forward a technical amendment on Report Stage to provide a necessary cross-reference to the new outbound payment measures being introduced in section 35. There will also be Report Stage amendments to...