Seán Kyne (Galway West, Fine Gael)
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279. To ask the Minister for Finance his plans to introduce a competitive income-based tax regime for intellectual property, the Knowledge Development Box; the number of submissions received by his Department as part of the public consultation process; and when it is envisaged that the next steps on the introduction of this important initiative will be taken. [25158/15]

Michael Noonan (Limerick City, Fine Gael)
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In Budget 2015, I introduced a new Road Map for Ireland's Tax Competitiveness which set out a comprehensive package of measures designed to reposition Ireland to reap the benefits of sustainable foreign direct investment in a changing international tax landscape.

The Knowledge Development Box ('KDB'), was one of the measures announced in the Road Map. 

I view the Knowledge Development Box as a positive measure for Ireland.  It is recognised internationally that investment and growth in OECD economies is increasingly driven by knowledge-based investment, which is related to research and development and intellectual property.  Putting in place an attractive tax offering for developing and commercially exploiting intellectual property is therefore important to encourage companies to develop their knowledge-based capital in Ireland, and for our continued success in attracting foreign direct investment into Ireland.

A public consultation to gather views on how the KDB should operate was launched on 14th January and closed on the 8th April.  The consultation paper invited submissions from interested parties on their views of how the KDB should be designed to ensure that it meets the key objective of being the most competitive in class, within the agreed international parameters for fair tax competition in this area.  This consultation went well with active engagement from stakeholders my officials met with a number of parties throughout this time and nearly 40 written submissions were received. 

At the same time, Irish officials have continued to engage with the OECD on the internationally agreed parameters that will confirm what acceptable tax competition for this area, and what may be viewed as an acceptable KDB regime.  These discussions have been on-going at the OECD Forum on Harmful Tax Practices and a consensus on the topic is expected very shortly.

All of the above will feed into the overall design of the KDB which is being finalised over this summer and will be legislated for in Finance Bill 2015.

Seán Kyne (Galway West, Fine Gael)
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280. To ask the Minister for Finance with regard to the agri-taxation review and the measures contained therein, the progress at introducing the recommendations, such as increased land mobility, assisting with succession, new stock relief, and stamp duty exemption; and if further recommendations in the review are to be introduced. [25159/15]

Michael Noonan (Limerick City, Fine Gael)
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In Budget 2014, I announced a review of the tax supports available to the agricultural sector in Ireland in conjunction with the Minister for Agriculture, Food and the Marine Simon Coveney TD. The purpose of the review was to analyse the benefits of the various tax measures to the agriculture sector and the wider economy versus the costs and to ensure tax policy aligns with the objectives set out in Food Harvest 2020.

The Review was overseen by a working group made up of the Department of Finance, the Department of Agriculture, Food and the Marine and the Revenue Commissioners. The Review included an independent cost benefit analysis, an international benchmarking exercise and a public consultation process. Following a competitive tendering process, Indecon International Economic Consultants were appointed to carry out the independent cost benefit analysis and the international benchmarking exercise. The report of the Agri-Taxation working group was published with Budget 2015 and a number of the group's recommendations were enacted in the subsequent Finance Act. These measures in particular were selected as the ones most likely to help younger and qualified farmers, improve land usage and give farmers greater flexibility to allow them to smooth out their tax exposures arising from variability in farm incomes.

The recommendations in the Agri-Taxation Report which have not been implemented to date, are still under active consideration.

I am advised by the Revenue Commissioners that they do not yet have details on the success of the measures introduced in Finance Act 2014 on foot of the agri-tax review as the tax returns for the affected years of assessment are not yet due to be filed. In relation to the increased land mobility measures, final figures are again not yet available and I understand that the Department of Agriculture, Food and the Marine, along with Teagasc, are currently collecting data in this respect. 

Finally, I am advised by the Department of Agriculture, Food and the Marine that they are still in discussions with the D-G Agriculture and Rural Development in relation to whether or not the relief from stamp duty on long term agricultural leases would constitute a legal State Aid. Until such confirmation is received from the European Commission no progress can be made on this point.