Results 22,621-22,640 of 27,945 for speaker:Michael McGrath

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: Can we have a few moments to conclude on this matter?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I am glad to hear it.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: The whole issue of the double Irish, whereby we have two Irish incorporated companies, one resident here and the other non-resident, and the transfer pricing arrangements have caused reputational damage to the country. I am assuming this is one of the reasons this proposal has been brought forward. The Minister is giving existing companies a period of time to restructure or redesign their...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: Even if the current restriction remained in place, all of the losses being carried by the banks would, over time, be offset against their profits, as Deputy O'Donnell pointed out. The issue is that in any given year the profits they accrue could only be reduced by half but all of the losses sitting on their balance sheets can be carried forward and offset against future profits. There is,...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: Over time.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I know that.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I understand.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I acknowledge that there is a calculation involved, and that is what I am trying to tease out. To clarify Deputy O'Donnell's question, did the original restriction of 50% of losses forward contain a sunset clause in the Act, and was it due to end?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: So it is not a timing issue as such, because that restriction was to remain in place indefinitely and the banks could only use 50% of the losses forward to restrict our tax liability.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: Yes.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: The Minister's point that it was not in the original Bill and was introduced by way of amendment is not significant. He is bringing forward many important amendments to his own Bill on Committee Stage.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I am not sure it is.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: So the Minister's advice from officials is that, in the fullness of time, if it were to remain in place, no tax is foregone as such.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: That is my concern.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: Okay.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: Reading between the lines of the Minister's statement, it seems that because we now own AIB and hold a minority shareholding in Bank of Ireland, and because, presumably, the medium to long-term plan is to dispose of our equity interest in those banks, removing this restriction enhances the value of those banks. It certainly strengthens their capital position and perhaps makes them more...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: This is the section which seeks to remove the restriction on NAMA banks using losses forward. On the one hand the budget was about taking from the banks by way of the introduction of a bank levy but on the other, giving back to the banks by way of removing the shelter of a maximum of 50% of taxable profits that could be offset by losses forward. As the Minister is aware, that was originally...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I thank the Minister for his response. I am happy to withdraw the amendment. Is the scheme is operational anywhere yet? Is it still awaiting sign-off?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: I move amendment No. 64: In page 53, between lines 10 and 11, to insert the following:“(4) To qualify for tax relief under this provision—(a) it shall not be necessary for the person claiming relief to be ordinarily resident in the relevant house, (b) any person who owns a pre-1915 house in a town with a population greater than 10,000 people shall be eligible to avail of tax...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance (No. 2) Bill 2013: Committee Stage (Resumed) (27 Nov 2013)

Michael McGrath: The Minister is doing exactly the same.