Results 41,941-41,960 of 46,260 for speaker:Simon Harris

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: I move amendment No. 59In page 54, line 38, to delete “and”.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: I move amendment No. 60:In page 54, to delete lines 39 and 40, and in page 55, to delete line 1 and substitute the following:“(ii) where that company is a member of a group, the group has turnover not in excess of the turnover threshold amount, and (iii) the company is a micro, small or medium-sized enterprise within the meaning of the Annex to Commission Recommendation 2003/361/EC of...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: We are probably both proud of the fact that we have a very difference perspective on this section of the Finance Bill, in terms of our views on the knowledge development box. It is not fair to say that the Minister was dragged, kicking and screaming anywhere in the context of his approach to ensuring that this country promotes best practice when it comes to taxation and plays a prominent,...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: The payment dates for preliminary tax, such that it will be €31 million next year but it would be €50 million in a full year. How we are arriving at the figure in terms of the expected cost is an important question. The annual cost of the knowledge development box in terms of tax foregone from 2016 forward have been estimated. This focused on companies who up until this year...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: No. In 2013, the total corporation tax liability of all six firms was €1.4 billion. That figure relates to the outer limit of tax that could be reduced by the KDB rate.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: On the latter point, the qualifying income is the trading income that is derived from the qualifying assets. This includes royalties that are attributable to the assets and sales income. Any income that results from a disposal of the qualifying assets, such as the patent, will remain subject to the capital gains tax, CGT, rate. Chargeable gains are not subject to the KDB rate. It is the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: Yes.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: When a company sells a product that derives some of its value from intellectual property, IP, but is not in itself IP then it will be able to avail of the KDB in relation to those products. The legislation provides that where any amount of the sales price of a product or service is attributable to one of the qualifying assets, namely, a patent, a copyright, a software or a third category of...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: On the issue of State aid and the EU, which is an issue previously raised by Deputy Michael McGrath, the KDB complies with the modified nexus standard which was agreed with the OECD as part of the base erosion and profit shifting, BEPS, process. The EU code of conduct has approved and adopted the modified nexus standard. Clearly, the tax sovereignty of a member state is a member state...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: Are we still on table 3.25?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: That is way out. The Deputy is speculating. No decision has been made on anything. I enjoy wide-ranging discussions, but it is going a bit far to speculate on the outcome of a European Commission ruling.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: It is speculation, as no decision has been made.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: I will.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: First, the Deputy approaches this debate from an interesting perspective, whereby he does not seem to think the tax rates and toolkits we have, and the various incentives and initiatives that successive Governments in this country have put in place over a lengthy period, which has been part of the success of our industrial policy, matter in terms of creating jobs and substance and therefore...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: That is not the way the world works. That is the Deputy’s ideology and I respect that, but it is not how the world works. In Deputy Boyd Barrett’s constituency there are thousands of people, in Cherrywood and other areas, employed by multinational companies. They are in well paid jobs. They pay tax to this country and make a living for their families and therefore they...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: I agree with Deputy Michael McGrath on this issue. I also agree that the value and benefit of the knowledge development box, KDB, to the economy should be measured in new research and development, additional jobs and investment. To clarify my earlier comments on the OECD process and the European Union, while the Irish box complies with the OECD BEPS process owing to the modified nexus,...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: We would.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: It is a fair point.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: Tax rates are matters for individual states. Therefore, the tax rate in Northern Ireland is primarily a matter for the Northern Ireland authorities and the British Government. The Irish Government is fully supportive of any measures that will help promote the all-island economy and make the island of Ireland more wholly competitive. However, as I was saying in my exchange with Deputy...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2015: Committee Stage (Resumed) (18 Nov 2015)

Simon Harris: Sinn Féin was supportive, which I welcome, and Deputy Boyd Barrett was supportive-ish, in his own words, which was fine. Let us remember where the modified nexus for knowledge development boxes came from. It did not come from this Government, from the Department of Finance or from the Minister, Deputy Noonan. The modified nexus came from the OECD BEPS process, which recognised that...