Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I am aware of the Senator's Private Members' Bill, the Worker Co-operatives and Right to Buy Bill 2021, and his interest in this matter. I note that it included a proposed new section 597AB for insertion in the Taxes Consolidation Act 1997 to allow for relief from capital gains tax on the sale of a business to a workers' co-operative. I understand the Bill proceeded to Second Stage in the Seanad on 28 June.

The Senator is aware that the Department of Enterprise, Trade and Employment is close to finalising a general scheme of a co-operative societies Bill, which sets out proposals for the most far-reaching reform of the legislation relating to co-operatives in almost 130 years and will enshrine the co-operative model in legislation for the first time. This work began in 2019. In the context of enactment of the aforementioned co-operative societies Bill, the Department of Enterprise, Trade and Employment intends to examine the range of supports that could accompany the modernised legislation, thus ensuring co-operatives are an attractive corporative option for doing business.

I do not consider it appropriate to initiate a separate report on such a specific aspect of the treatment of co-operatives ahead of the reform of the legislative framework already under way. Consequently, I do not propose to accept the recommendation. I remind the Senator that there are existing capital gains tax reliefs in the legislation which may apply on the disposal of a business or business assets, including retirement relief and revised entrepreneur relief and, depending on the circumstances, these may already be available in respect of a disposal to a workers' co-operative.