Results 3,701-3,720 of 49,836 for speaker:Stephen Donnelly
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Capital gains tax is paid. It is not true that introducing capital gains tax for the first five years and then exempting afterwards represents a new tax. Pension funds are exempt from pretty much everything, but property companies pay capital gains tax. This is not the same as share gains. It is not like the situation where a US investor buys shares in CRH which double in value and pays...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: What is the difference between a hotel company and a fund that owns and manages five hotels?
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: That is not my understanding. The Minister of State has given the example of the gross roll-up of gains for seven years within a qualified investment fund. On exiting, one is taxed on the capital gains and is not CGT exempt. If the Minister of State and I wanted to set up a property ownership fund rand go out and buy three hotels, we could include it in a qualified investment fund and all...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: There is a misunderstanding between capital gains tax in share ownership which is paid in the country where the person lives and capital gains tax on physical assets which is paid in the country where the assets are. If one buys a hotel in New York and sells it at a profit, the United States will apply capital gains tax. If one buys shares from a company based in New York which double in...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: If that is true, the United Kingdom is a special example for Ireland and we would be better off treating it separately.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: If an Irish citizen buys an apartment in France and sells it for a profit of €100,000, the French Government will apply capital gains tax. If an Irish resident buys an apartment or a hotel in Ireland and sells it for a profit of €10 million, up until this provision is enacted, he or she will pay capital gains tax. In addition to the point made by the Minister of State, he or...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: An Irish resident investor.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Yes.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Yes. I referred to an Irish resident investor.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: In the new world the person concerned will not pay capital gains tax. He or she will still pay income taxes when he or she is paid from the fund, but the fund will not pay capital gains tax.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: I appreciate that is what the amendment is trying to do, but I just do not believe that is what it will do it. Certain assumptions have been made. For example, capital gains tax is currently not charged on property related profits. The amendment will introduce it if there is a flip within five years. I believe capital gains tax is applied to profits generated from property.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Let us consider both. If an Irish citizen living in Ireland buys a hotel for €10 million and sells it for €20 million, he or she will pay capital gains tax on the €10 million profit. In this new world he or she will not do so.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: That is his or her personal income tax liability.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Yes. Let us remember that for any company there are two steps. If one owns a company, the first step is to pay its taxes, including capital gains tax.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Yes.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: I argue that it is because today an Irish resident investor will pay capital gains tax and he or she will pay tax at the rate of 41%. That is how it works. He or she will not do so anymore.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Sure.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: If one buys a hotel and places it in the ownership of a qualified investment fund, one will not pay tax for seven years. At the end of the seven year period the fund will pay tax. It will then distribute the post-tax profits and a person will pay income taxes on disbursement because it is part of one's income.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: They are tax deferral mechanisms.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Unless-----