Ruairi Quinn (Dublin South East, Labour)
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Question 515: To ask the Minister for Finance if the part of EU Directive 2005/19/EC due for implementation by 1 January 2006 was implemented before 1 January 2006 the reason Ireland did not meet its obligations to implement this directive before the deadline; and if he will make a statement on the matter. [1111/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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EU Directive 2005/19/EC contains amendments to the Directive 90/434/EEC on the common system of taxation applicable to mergers, divisions, transfers of assets and exchanges of shares concerning companies of different Member States. The purpose of that directive is to provide that such transactions can be carried out on a tax neutral basis while protecting the interests of the member states.

Directive 2005/19/EC amends the 1990 directive in a number of ways. One aspect concerns the formation of two new types of EU entity. The entities concerned are European companies, or SEs, and European Co-operative Societies, or SCEs. The 2005 directive adds these entities to the list of companies covered by the 1990 directive. In addition, when an SE or an SCE changes its registered office from one member state to another, the 2005 directive provides that it should be able to do so on a tax neutral basis. The aspects of the 2005 directive concerning SEs and SCEs are required to be transposed into law by 1 January 2006 while the balance of the provisions have to be transposed by 1 January 2007. It is proposed that all of the issues be implemented with effect from 1 January 2006 by way of provisions in the 2006 Finance Bill.