Results 1,721-1,740 of 34,833 for speaker:Seán Fleming

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: We discussed this topic on Second Stage. To briefly summarise, the help-to-buy scheme announced in budget 2017 is an income tax incentive measure designed to assist first-time buyers with a deposit required to purchase or self-build a new home or apartment to live in as their home. The relief is only available in respect of new builds with a view to increasing supply. This measure is to...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: This issue was raised previously by Senator Higgins, including last year. There is a special section within the Revenue Commissioners, known as the large cases - high wealth individuals division, deals with high wealth individuals. It is important the public knows that these individuals are not treated in the same way as any other taxpayers. There is a special section in Revenue which...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I take on board the spirit of what the Senator said. If Revenue has more information available on the next occasion we come to deal with a Finance Bill, that information should be made available for consideration in the context of the drafting of that Bill. Given that a report was produced as recently as last year, we have the most up to date information available. The Senator's point is...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I am aware of the matters raised by the Senators and can advise that my officials have been in touch with their counterparts in Northern Ireland on the matter. I note that the relief applies not only to persons with a UK-based employment but also for employment in the EU and countries with which we have a double taxation agreement in compliance with Ireland's treaty obligations. While it is...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: This issue came up in the Dáil after Report Stage last week and the Minister, Deputy Donohoe, gave a clear commitment that the issue of cross-Border workers would be looked at by the strategy group well in advance of next year's budget. The Minister put that on the record on Report Stage in the Dáil. It will be examined in 2021 as the situation evolves and fully considered in...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I acknowledge the new section proposed to be inserted in the Bill. Years ago, there was such a provision but it was abolished, I think, in 2010 or 2011, following a recommendation from the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increased the cost of housing, rent...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I will be brief. I accept that there is some contradiction in the logic on the Senator's side and ours. Previously, the logic of his point was to put money in builders' pockets, but now he wants to put money in landlords' pockets. That is a contradiction. The difference on our side was that I was in favour of helping people to buy houses. That is our priority. We are not in favour of...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I thank the Senators for discussing this important scheme. It is not subject to any recommendation, but it is a significant element of the legislation. On Second Stage on Tuesday, Senators Casey and Buttimer referred to the issue of warehousing tax. I did not have the figures with me then, so I will confirm now that the total amount of tax debts warehoused is €1.9 billion. As such,...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I will address a comment made in the past few moments even though it does not strictly apply to this section. Believe it or not, I have good news to impart to Senators who asked for the VAT reduction to be extended into next year. It will be effective until December 2021.

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: We will take it year by year. With effect from 1 November 2020, hospitality- and tourism-related services and goods currently subject to a VAT rate of 13.5% will, on a temporary basis, be subject a reduced rate of 9%. This will apply to catering and restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, certain printed matter and...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The cost of assets that are used to generate taxable trading profits are recognised as legitimate business expenses. While these costs are not fully tax deductible in the year in which they are incurred, tax relief is available through capital allowances, which spreads the cost of the asset over a number of years. This gives a fairer reflection of the performance of the business for...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The real estate investment trust framework was introduced in 2013 to facilitate long-term, risk-diversified investment in rental property, by removing a double layer of tax which otherwise would have applied. Income and gains from Irish property are not taxed within the REIT but are instead taxed in the hands of the investor when the funds are distributed. In 2019, Department of Finance...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: Information published in the 2019 annual reports relating to this area and the organisations involved indicates that the total value of REITs in the Irish market is €3.7 billion, 28% of which is residential and 72% commercial. That information only became available this year. We examined the matter this year based on financial information produced less than 12 months ago. I do not...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: Of course, everybody knows that the past six months have been difficult, as the next six months will be. We have been here a few times as a result of Covid-19. There was the July stimulus package and now the Finance Bill, with billions of euro going to support the Irish economy and keep businesses open, or in a suspended state until they get to reopen. That has come at a cost of billions...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The Senator is saying that the REIT should pay 33% tax. The investor gets his or her income. The Senator wants a mechanism in place whereby the investor, when filing his or her income tax returns, should be able to get recognition for the 33% that has already been paid. I do not see that here.

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: All I see in front of me is 33% capital gains tax on the company and then, when the person gets his or her dividend, he or she pays 40% tax on money that has already suffered 33% tax in the first place. If what the Senator is proposing is a 75% tax on a person who invests in a house, property or apartment, I am not going there.

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I will conclude on this by saying capital gains tax is different from income tax. If the Senator or I happen to have a property that we sell and it is not a principal family residence, we pay capital gains tax of 33%. We might have other income that we pay 20% or 40% tax on, depending on our income. They are two unconnected taxes paid by one individual but one is not added on top of the...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: I understand the general point being made but this matter could be discussed in more detail at another time. The issue of bank profits not being subject to corporation tax because the loss is brought forward is the essence of what we are discussing. Although the precise impact of Covid-19 for the full 2020 year may not be known until early next year, AIB, Bank of Ireland and Permanent TSB...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The Senator's last three words were "in the future". She has clearly stated in her that if we were to implement this measure, it would have no practical effect this year because we all know the banks are in a loss-making situation and that is not likely to change on 31 December 2020. The Senator is aware of the volume of supports available that are affecting people's daily lives. I would...

Seanad: Finance Bill 2020: Committee Stage (11 Dec 2020)

Seán Fleming: The question of carbon tax is one on which many people have many views. The programme for Government is very clear on this matter and we gave a clear commitment on it in advance. During the election earlier this year, people were aware of our party's views on the carbon tax and that it would be increased. To compensate for that, there is an increase in the fuel allowance of €3.50...