Results 33,101-33,120 of 34,956 for speaker:Seán Fleming

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I thank the Senators for discussing this important scheme. It is not subject to any recommendation, but it is a significant element of the legislation. On Second Stage on Tuesday, Senators Casey and Buttimer referred to the issue of warehousing tax. I did not have the figures with me then, so I will confirm now that the total amount of tax debts warehoused is €1.9 billion. As such,...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I will address a comment made in the past few moments even though it does not strictly apply to this section. Believe it or not, I have good news to impart to Senators who asked for the VAT reduction to be extended into next year. It will be effective until December 2021.

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: We will take it year by year. With effect from 1 November 2020, hospitality- and tourism-related services and goods currently subject to a VAT rate of 13.5% will, on a temporary basis, be subject a reduced rate of 9%. This will apply to catering and restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, certain printed matter and...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The cost of assets that are used to generate taxable trading profits are recognised as legitimate business expenses. While these costs are not fully tax deductible in the year in which they are incurred, tax relief is available through capital allowances, which spreads the cost of the asset over a number of years. This gives a fairer reflection of the performance of the business for...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The real estate investment trust framework was introduced in 2013 to facilitate long-term, risk-diversified investment in rental property, by removing a double layer of tax which otherwise would have applied. Income and gains from Irish property are not taxed within the REIT but are instead taxed in the hands of the investor when the funds are distributed. In 2019, Department of Finance...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: Information published in the 2019 annual reports relating to this area and the organisations involved indicates that the total value of REITs in the Irish market is €3.7 billion, 28% of which is residential and 72% commercial. That information only became available this year. We examined the matter this year based on financial information produced less than 12 months ago. I do not...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: Of course, everybody knows that the past six months have been difficult, as the next six months will be. We have been here a few times as a result of Covid-19. There was the July stimulus package and now the Finance Bill, with billions of euro going to support the Irish economy and keep businesses open, or in a suspended state until they get to reopen. That has come at a cost of billions...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The Senator is saying that the REIT should pay 33% tax. The investor gets his or her income. The Senator wants a mechanism in place whereby the investor, when filing his or her income tax returns, should be able to get recognition for the 33% that has already been paid. I do not see that here.

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: All I see in front of me is 33% capital gains tax on the company and then, when the person gets his or her dividend, he or she pays 40% tax on money that has already suffered 33% tax in the first place. If what the Senator is proposing is a 75% tax on a person who invests in a house, property or apartment, I am not going there.

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I will conclude on this by saying capital gains tax is different from income tax. If the Senator or I happen to have a property that we sell and it is not a principal family residence, we pay capital gains tax of 33%. We might have other income that we pay 20% or 40% tax on, depending on our income. They are two unconnected taxes paid by one individual but one is not added on top of the...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I understand the general point being made but this matter could be discussed in more detail at another time. The issue of bank profits not being subject to corporation tax because the loss is brought forward is the essence of what we are discussing. Although the precise impact of Covid-19 for the full 2020 year may not be known until early next year, AIB, Bank of Ireland and Permanent TSB...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The Senator's last three words were "in the future". She has clearly stated in her that if we were to implement this measure, it would have no practical effect this year because we all know the banks are in a loss-making situation and that is not likely to change on 31 December 2020. The Senator is aware of the volume of supports available that are affecting people's daily lives. I would...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The question of carbon tax is one on which many people have many views. The programme for Government is very clear on this matter and we gave a clear commitment on it in advance. During the election earlier this year, people were aware of our party's views on the carbon tax and that it would be increased. To compensate for that, there is an increase in the fuel allowance of €3.50...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I am very clear that on budget day, the Government stated it was targeting those people in receipt of those three particular social protection payments as the three categories that were most identifiable. There are many people who will end up being net payers of carbon tax but who will not get anything back out of it. It generally falls to people in the workforce who are earning income....

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I take the point the Senator is making and it is the same formula of an amendment that we have had previously. People, however, can detect and see for themselves with the level of reporting of this carbon tax, that it is going to be fully scrutinised and that there will not be any shortage of debate, discussion and reports on this issue. As I have already said, the Minister, Deputy Michael...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I accept the spirit of the recommendation but we want to do more than what is recommended in it. I do not want to tie my hands just to producing a report. It would be only half of what is needed. What we would do with that report and the measures we would put in it and introduce are the key issue. We will be getting to that point. A report is step 1 along a more important process but I...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: There are two similar type sections in the Bill. Section 30 deals with excise duties and this section deals with VAT. Both cover the same issue. This section amends the Value-Added Tax Consolidation Act to align Irish VAT legislation with the provision for the EU VAT directive. The purpose of this is to align with a long-established EU VAT directive. The VAT directive requires member...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I will explain it. If an Irish company was working on a contract in some country in Europe or on a site under the European Union Common Security and Defence Policy and there were VAT implications, this section deals with that. There is no change to the constitutional provisions relating to armed forces, which effectively prohibit foreign forces being based or maintained in the State. I...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I remember this issue well from the Brexit Bill. It relates to the retail export scheme. I want to clarify what has already been said in the Oireachtas. This recommendation calls for a report on the operation of the scheme. I remind Members that the Minister for Foreign Affairs gave a commitment in the Oireachtas on Second Stage of the Brexit Bill that his Department and the Revenue...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: We are back to the pandemic unemployment payment and there is a significant difference of opinion on the basic question as to whether it should be taxed. The issue is deeper than getting a report on how it is working out. It would not be physically possible to do a report within a couple of months of the year's end. In an earlier debate, we were asked for a report on how much tax arose a...