Leo Varadkar (Dublin West, Fine Gael)
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Question 103: To ask the Minister for Finance if an assessment has been carried out on the administrative cost that will be imposed on businesses by changing the VAT rate in the middle of the two month VAT period; and if he will make a statement on the matter. [39097/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The change in the standard VAT rate is taking effect from 1 December 2008. The change could have been made effective from 1 November 2008, the start of the preceding VAT taxable period, however, the later date of 1 December 2008 was chosen in order to give industry more time to adjust their systems to the Budget change. This provided a lead-in time of almost seven weeks during which traders can adjust to the new rate.

While the change in the VAT rate is effective from 1 December 2008, it is important to note that this does not impose any additional obligations on business in terms of their VAT returns. Businesses will file returns as normal on 19 January 2008.

In order to clarify the effect of the change in the standard VAT rate and its implications in different business circumstances, the Revenue Commissioners website contains detailed information in this regard.

Leo Varadkar (Dublin West, Fine Gael)
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Question 104: To ask the Minister for Finance if efforts have been made to lobby members of Congress and the administration in opposition to possible changes to US corporate tax law that might adversely affect Ireland; and if he will make a statement on the matter. [39098/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I have said previously my Department and I are always mindful of potential international developments that could adversely affect foreign direct investment here. However, I am not aware of any concrete proposals to make changes to US tax legislation. While there has been some speculation in the context of the Presidential election that any new Administration could seek to make changes to the tax code, it is merely speculation and I am not prepared to comment on it.

I do not need to remind the House of the importance of US investment to the Irish economy which has been valued by successive Irish Governments over the last forty years. Irish investment in the US is also of significance. In that context it would be remiss of me not to be mindful of the sensitivity of investment decisions to the overall economic environment that would prevail including the tax environment that could undermine such decisions.