Results 1,661-1,680 of 27,945 for speaker:Michael McGrath

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: We are aware of that concern. The answer is it should not be a concern. The issue of shares was never an exempted activity. It was always outside the scope of VAT, so the provision under paragraph (7)(1) for an exemption for agency services relating to the exempt financial services under paragraph (6)(1) did not apply to agency services for the issue of shares. However paragraph (6)(1)(b)...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: Schedule 1 to the Stamp Duties Consolidation Act 1999 provides for a charge to stamp duty on leases. The rate of stamp duty payable depends on the period of the lease. A term not exceeding 35 years or of indefinite duration is charged at 1% of the average annual rent; a term exceeding 35 years but not exceeding 100 years is charged at 2% of the average annual rent; and the term exceeding...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I thank the Deputy. The public policy position here is that we believe the stamp duty should not apply to the overwhelming majority of residential leases and that the stamp duty would be charged for other purposes. It is a recognition that since the limit was changed back in 2017 there would be more impacted properties. That is a reality given market conditions and how that has changed...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I am informed that we do not have data on the numbers but we will double-check that. I understand that it is presenting as an issue in the case of some residential leases being entered into in the Dublin region. I will endeavour to obtain the exact number of cases as I do not have it to hand.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: In the case of terms exceeding 35 years but not exceeding 100 years, it is charged at 2% of the average annual rent in that scenario.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I will check that point. I would expect that it would need to be explicit in the agreement that the duration is of that period as a minimum rather than something that just organically develops over a period of time. I will ask Revenue to check that point.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I will address a number of points raised by the Deputy. As I announced in my budget speech, a revised bank levy is being introduced for 2024 that will be payable by banks that received State assistance during the global financial crisis. The banks concerned are AIB, Bank of Ireland, EBS and Permanent TSB. It will replace the current bank levy, which is based on a percentage of the deposit...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: We intend to publish the various submissions that we received in the course of our work. I appreciate that this is, in effect, the discussion on the Deputy's amendment so I will address some of the points he has made. The Deputy is seeking a report on the rate of the levy relative to the net interest income and operating profit for all in-scope institutions since it was introduced. It is...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: Does the Deputy mean the number of years?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: This is something we will keep under review every year. There will be further work across next year, as I alluded to earlier. It is something that I intend to keep under review.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I will speak to the section first. When a sale of shares in an Irish company takes place anywhere in the world, a charge of stamp duty will arise at the rate of 1% of the consideration paid. However, section 90 of the Stamp Duties Consolidation Act 1999 provides for an exemption from stamp duty on the transfer of an American depository receipt, ADR. An ADR is an instrument issued by a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I think the issue there is it is not a recognised relationship beyond the age of 18. This is anchored in the fostering relationship that is there under the age of 18. It involves a child; a minor. Beyond the age of 18, it is not a formal relationship in the same way as with any adult child living in a home. That is my understanding.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: I have an additional note I will put on record. It is worth teasing this out because it is an important issue. Relief for formal fostering arrangements applies in the case of inheritances only where, prior to the date of inheritance, the foster child had been placed in the foster care of the person providing the inheritance under the Child Care (Placement of Children in Foster Care)...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: To clarify, my understanding is if there is a formal fostering arrangement in place under the appropriate regulations prior to the age of 18, then the minimum five-year period does not apply in that circumstance, namely, where it is a formal fostering arrangement under the regulations. That is the relevance of the regulations I referred to in my earlier contribution. The five years does not...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: We are dealing with historical fostering arrangements that predate the regulations that have been referenced. This extends the existing provision to people in such arrangements.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: Relief is already provided for any fostering arrangement under the regulations that I laid out, namely, the 1995 regulations. This additional measure relates to fostering arrangements that predated those regulations. I will double-check, though. It is important that we get it right.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: We will provide a note. My understanding is that what I said was correct, but we will set it out comprehensively in the note.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (Resumed) (8 Nov 2023)

Michael McGrath: Where a person receives an interest-free loan for less than full consideration, he or she is deemed to take a gift for capital acquisitions tax purposes. The gift is the interest-free element of the loan rather than the loan itself. This section of the Bill amends section 46 of the Capital Acquisitions Tax Consolidation Act 2003 to provide for the introduction of a mandatory reporting...