Results 3,721-3,740 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: I fully appreciate that in the policy-----
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: No, we cannot.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: I would like to come back in later.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: With the greatest respect for the Chairman's position, there is no time limit. This is complicated legislation that will take time to tease out.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: I appreciate that, but I do not want to come back in only when we get to the end of the section. This conversation will take some time.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: On this specific point, when the new vehicles were brought in my understanding was that the whole point of them was to enable this to be done. The intention was to attract foreign or domestic investment capital into property and to provide for no tax to be charged in this regard for several years. We wanted the money. My understanding was that the whole point of these vehicles, rightly or...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: I want to establish a baseline on which we would all work and will use an example to make it real because there is a lot of abstract stuff and acronyms. Let us somebody pays €10 million for a hotel and runs it for ten years, he or she has a trading profit of €1 million each year and then sells the hotel for €20 million. In other words, he or she has a total of...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: -----it paid income tax. If, however, it was non-resident, no corporation tax, capital gains tax or withholding tax was paid and the company might or might not have been paying income tax in its own country. The amendment changes the names of the funds and calls them real estate funds, but there will still be no corporation tax and no capital gains tax paid. However, there will now be a...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Yes, but, what if it is a company? There is a concept that taxing the company and then taxing the shareholder is somehow a double taxation. It is not double taxation. It is completely normal taxation. Companies are taxed, they pay profits to the shareholders and those shareholders are then taxed. Is this right? I would like to run through all of this. I accept that pension holders,...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: I accept that. I just want to walk through the different investment classes. Can the Minister of State clarify that pension funds will pay no capital gains tax and no withholding tax?
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Will the Minister of State clarify if life assurance funds will pay capital gains tax and withholding tax or not?
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: What about credit unions? The pension and assurance fund companies were not treated the same ten years ago. Life assurance funds paid their taxes then and they do not now, and this is the danger of marking everything to today. So, pension funds will not pay any taxes? Life assurance funds will not pay any taxes.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: No, there has not been a change. Ten years ago when a person drew down the pension, he or she paid income tax on his or her pension. It was considered normal income.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Absolutely, I accept that they were not, but life assurance funds did pay taxes. They may not have paid tax on the funds they were investing on behalf of their policyholders, but life assurance funds have their own capital which buys the hotels and the properties and so on.
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: They do. The exemption for the life assurance funds is for the policyholder capital, and not for the capital that is owned by the life insurance fund, is that correct?
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Life assurance funds have two pots of money. One pot of money is their own money; for example, if a person takes out a life assurance policy and pays a €3,000 premium per year into the fund, on one's death one's spouse receives €200,000. The premium that is paid in every year to that fund is owned by the life assurance fund. The second pot of money is approved retirement...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Amendment No. 100 says that capital gains tax will not be paid by anybody once it is held for five years. On exclusions from the withholding tax - exclusions from being a specified person - the amendment cites pension funds, investment undertakings, life businesses, credit unions, qualifying companies, section 110 organisations and so forth. I want to walk through this, rather than getting...
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Will the Minister of State clarify, with regard to life insurance funds, that in this new world it is the not the policyholder on draw-down but the life assurance company itself that will pay taxes on profits from property?
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Will the shareholders pay the withholding tax, or will there be any capital gains or corporation taxes paid on the property assets?
- Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)
Stephen Donnelly: Is it taxed when it is distributed to the policyholder, or is it taxed within the company as well?