Written answers

Thursday, 17 May 2012

Department of Finance

IFSC Clearing House Group

5:00 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context

Question 52: To ask the Minister for Finance the number of the measures present in the Finance Bill 2012 which were either proposed, discussed or requested at meetings of the IFSC Clearing House Group in the preceding year 2011 or in January 2012; and if he will make a statement on the matter. [24762/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Strategy for the International Financial Services Industry in Ireland, which was launched by the Taoiseach in July of last year, identifies a competitive and internationally respected tax framework as one of the key foundations for success. The elimination of double taxation is central to the competitiveness of the sector and is the driver for a number of the measures in Finance Act 2012. None of the proposals have a significant cost element and the majority are aimed at simplifying the tax treatment applying to complex financial transactions in order to make it easier to do business in Ireland.

The Finance Act 2012 contains 13 sections to support the international financial services industry to meet the ambitious target of creating 10,000 jobs over the next five years as set out in the IFSC Strategy. Taxation measures in this area tend to be highly technical. In summary, the measures enhance the competitive position of the sector through :

· Reducing double taxation in the corporate treasury and aircraft leasing sectors,

· Providing clarity around the tax treatment of complex financial transactions in terms of stamp duty in particular,

· Addressing tax issues arising for investment funds due to the UCITS (Undertakings for Collective Investment in Transferable Securities) IV Directive which was implemented on 1 July 2011,

· Further easing the administrative burden in relation to non-resident investors in Irish investment funds,

· Enhancements to the tax regime for Islamic Finance which was introduced in Finance Act 2010,

· Allowing Irish structured finance companies to invest in "forest carbon credits" in order to support the 'Green IFSC' initiative.

None of the measures have a significant cost element and the majority are aimed at simplifying the tax treatment applying to complex financial transactions in order to make it easier to do business in Ireland.

Taken together with the more generally applicable Special Assignee Relief Programme and Foreign Earnings Deduction, the measures represent a significant package which will support the competitiveness of the international financial services industry without significant cost to the Exchequer.

Comments

No comments

Log in or join to post a public comment.