Alan Kelly (Labour)

I move recommendation No. 3:

In page 11, before section 1, to insert the following new section:

"PART 1

COMMISSION ON TAXATION

1.—The Minister shall in establishing the commission on taxation include in its terms of reference the following matters:

(a) to examine anomalies arising from the tax treatment of married persons where one spouse remains out of paid employment in order to attend to child care duties;

(b) to examine the treatment of unmarried persons living together including gay couples in long term relationships;

(c) to examine the operation and possible reform of stamp duty particularly the capacity of property developers to avoid stamp duty on certain transactions and the exclusion of certain financial transactions (e.g. contracts for difference) from the lower rate of stamp duty applied to financial transactions;

(d) to examine the need to ensure that carbon tax proposals have due regard to the ability of less well off individuals including pensioners to meet the cost arising from increased taxation on carbon based fuels such as coal and gas;

(e) to inquire into the fairness and equity of the overall tax system and to provide for the evaluation of tax breaks and other provisions permitting tax payers to mitigate their tax liabilities and the impact in particular of provisions for exemption from tax and residency rules and shall publish at regular intervals the outcome of their enquiries into the tax system.".

This amendment has been somewhat pre-empted or overtaken by the decision by the Minister for Finance to set up a Commission on Taxation. While I will not press the amendment, I wish to make a few points. The terms of reference set out for the commission need to be widened. They should provide some methodology in respect of the examination of high net worth individuals and the level of tax they pay which, as my party has pointed out on a number of occasions, is not at the required rate. For various reasons they do not seem to be paying tax although they are investing in capital programmes, etc. However, some analysis is needed.

We believe the terms of reference of the commission need to be widened. If this is not being accounted for, the way it will work will not satisfy the requirements of what a commission should be doing. While it has terms of reference to deal with many issues, I would like to see it carrying out a serious review of the benefits of tax individualisation, because I and others across many parties are not convinced about its merits. While I will not press the recommendation, I wish to make those points.