Results 20,321-20,340 of 35,829 for speaker:Pearse Doherty

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: Okay. When introducing my amendment, I acknowledged that that would be the case and that further monitoring would be needed. However, we have already amended this legislation. Not as a result of tax returns, though, and I am not asking how much money the State has collected. Rather, the industry's players are finding ways around this issue. The report could be short. It could be to...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I said there should be an interim measure. When we have the information, there is a need for an assessment of the effectiveness. The Department does not produce a report after a year or 15 months, when the information is there, to confirm that it is robust or otherwise. There is a need for something like it in respect of the funds industry. While I have not looked back to the debate that...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: It is about the principle of an interim report if there is evidence. It does not need to be in the Finance Bill. It is a commitment to work together and, if there are issues, to bring them to our attention and re-examine the section, so we can be prepared for next year's finance Bill. When the data become available, there should be a report on them. It should be the norm, for most tax...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I want to talk about some of the same topics as Deputy Stephen S. Donnelly.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I agree with Deputy Stephen S. Donnelly that we need time to discuss the legislation. One should be able to move in and out of the debate and the Chairman has always facilitated us. Having said that, the Deputy has got it wrong in terms of how capital gains tax is applied to funds. If he is correct, I have misunderstood the way in which the provision operates. I believe there is no CGT...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: It is not true the threshold is there because a threshold is required. This is not a true statement. A threshold is not needed. There is absolutely no reason to need a threshold. The Minister of State has not given a reason for having a threshold, bar that he does not want to discourage funds from investing in property. They can invest in property. Even if property makes up 1% of a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I have questions on a shareholder in a fund with IREF assets where the shareholding is more than 10%. I understand the dividend paid out is treated as income from immovable property under any REIT claim for Irish dividend withholding tax paid under a double tax treaty. Will the Minister of State confirm whether this is the case?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: For a shareholder in a fund with IREF assets with a shareholding of less than 10%, when the dividend is paid out it is treated as Irish dividend income under any reclaim for tax paid under a double tax treaty. Is this correct?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: This means they will not pay 20%. A US investor will pay 15% and other investors will pay less depending on the jurisdiction in which they live.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: Obviously, if they own more than 10% of the fund, it is more beneficial to the State because it would be treated as a immovable property and therefore the full 20% will apply and they will have no reclaim for dividend withholding tax. Why are we making a distinction between somebody with more than 10% and somebody with less than 10%?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: Ireland has primary taxing rights over property. We have established the principle under the legislation that income arising from an IREF asset should be treated as income from immovable property and subject to the full 20% dividend withholding tax, so that regardless of location there is no way to get out of the 20% withholding tax. However, if one owns less than 10% of...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: There is no reason why we do not treat all investors and the income arising from the IREF assets as income from immovable property. The 20% rate is generous. Given the five-year provision, which I do not accept, it is still a generous structure.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: Let us take an example whereby the Minister of State owns 11% of the fund and I own 9%. When the dividends are paid out, we each get €1 million. The Minister of State pays to the Irish State 20% or the fund will hold 20% on his behalf. For me, if I were an American, it would be 15%. Regardless of who makes the decision, this will only apply to dividends and income generated from...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: Let us consider the example of REITs. The principle applies because it is the principle of taxation of property in this State. If one takes an American investor, REITs are factored into the double-taxation agreement we have with America. Accordingly, there is no reclaim with REITs because the existing principle is established in terms of property. We have not done this with our other tax...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: Specifically, in our agreement with America, we have REITs. It is the only country with which we have it written into how dividends from REITs would be treated.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: It is our treaty as well. I know it is in the middle of renegotiation. It will be interesting to see how the new US Administration will deal with that. The point I am making is that we have established a practice that income from property can be treated differently. We have primary taxing rights, regardless of where the individual resides. All the other countries have secondary...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I disagree.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: There are other issues but I will come back to them another time.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I would prefer to finish the section instead of having to come back to it again with a second wind.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Pearse Doherty: I have a couple of questions on IREF assets. Can the Minister of State tell us if nursing homes, private health care investments and renewable energy, such as wind turbines, will be seen as IREF assets?