Results 4,461-4,480 of 33,118 for speaker:Paschal Donohoe

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I thank Deputy Boyd Barrett for his question and his long-standing interest in the matter. I will deal with some of the different issues the Deputy raised there. We have a fundamental difference in that the Deputy believes that taxation should be applied to the gross trade profits a company can make and he has made that clear to me on a number of occasions whereas the argument I have tried...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I accept there has been a step change in corporate profitability in the Irish economy and the global economy. I am aware of the changes to which the Deputy referred and the different companies that have done really well, particularly since 2019. However, if there has been a step change in corporate profitability, there has also been a step change in the amount of corporate tax that is paid...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: If it is okay with the Chairman, I am going to take amendments Nos. 21 and 51 together because it has been indicated to me that there is an amendment from Deputy Nash on the same topic.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: That is fine. It is on the same topic.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: No problem. I did not notice that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: Energy policy, including increasing costs of energy supply and the taxation of profits, is a matter of great concern to the Government. In April, the Government approved and published the national energy security framework, which sets the overarching response to the impacts of the war in Ukraine on the energy system in Ireland. In late September, Ireland, along with our fellow EU member...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: If the Deputy were to send me his CV, I am not sure what I would be able to do with it.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The Deputy's CV is well known to me anyway.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The disposal of a patent is regarded under general tax principles as a capital disposal. Any gain arising is subject to capital gains tax at 33%. The disposal of a patent right, for example a licence granted to use a patent, can be subject to capital gains tax. Where a capital sum is received, the net proceeds are charged to income tax under case 4, which is currently 25% for corporates or...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The reason it might increase revenue is that the rate of capital gains tax is 33%, as the Deputy knows, whereas at the moment the disposal of a patent right is taxed at either 25% for a corporate or 20% to 40% for an individual. All other things being equal, the rate itself is going up so that is why it could give rise to a gain.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I will explain why that might then lead to a loss. There are reliefs available under capital gains tax that would offset the benefit that could be received by the increase in the rate.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: Yes. I will go back to the section itself. I am referring to reliefs that the Deputy and I have discussed many times now - the group reliefs that are available regarding the transfer of assets inside a company. The operation of those reliefs could be sufficient to offset the gain that may be made by the rates going up.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 27: In page 62, line 14, to delete “in an accounting period” and substitute “in respect of an accounting period”. These are Government amendments. Following publication of the Finance Bill, it was identified that a number a technical amendments are necessary to ensure changes to the research and development tax credit regime operate as...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 28: In page 63, lines 24 and 25, to delete “that begins on or after 1 January 2022 but not later than 31 December 2022,”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 29: In page 63, line 34, to delete “in an accounting period” and substitute “in respect of an accounting period”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 30: In page 64, lines 14 and 15, to delete “that begins on or after 1 January 2022 but not later than 31 December 2022,”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 32: In page 67, line 18, to delete “(9)” and substitute the following: “(9)(a)”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 33: In page 67, between lines 21 and 22, to insert the following: “(b) The company shall, when making a claim in accordance with paragraph (a), provide details of — (i) the amount of the expenditure attributable to research and development activities incurred by the company during the accounting period concerned in respect of— (I) machinery or...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 34: In page 68, line 23, to delete “in which” and substitute “in respect of which”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I move amendment No. 35: In page 68, between lines 41 and 42, to insert the following: “(13) Where a company specifies that the first instalment, under subsection (6)(a), is to be treated, under subsection (7)(a), as an overpayment of tax, and where that amount is, under section 960H, offset in whole or in part against the company’s corporation tax payable (within the...