Eoghan Murphy (Dublin South East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

66. To ask the Minister for Finance if he will amend the inheritance laws, to allow a flat allowance for an individual over a person’s lifetime, regardless of the size of the inheritance or the relationship with the donor; and if this would be fairer. [3515/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Capital Acquisitions Tax (CAT) is the overall title for gift and inheritance tax.

For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.

There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A: tax free threshold €280,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: tax free threshold €15,075applies in all other cases.

Transfers and inheritance between spouses are not subject to CAT.

Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold.

I take it that the Deputy proposes abolishing these different thresholds and applying a single lifetime tax-free threshold to all receipts by gift or inheritance in a person's lifetime regardless of who they are received from. I have no plans to make such a change to the CAT legislation. The differing treatment of gifts and inheritances depending on the recipient's relationship to the donor has been an element of CAT since its introduction. It reflects a recognition of the legitimate wish of people to be able to provide for those closest to them while at the same time protecting the tax base for capital tax purposes.

Clare Daly (Dublin North, United Left)
Link to this: Individually | In context | Oireachtas source

67. To ask the Minister for Finance the arrangements he made with the Microsoft company in respect of being granted the status of being domiciled here; if that arrangement included a condition that it was required to retain manufacturing here; and if this arrangement is now non-existent given the decision of the Arvato plant in Swords in County Dublin to re-locate its packaging and distribution of Microsoft software to the Czech Republic from July 2016. [3517/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am not clear what arrangement the Question is referring to. The residence of a company is set down in statute and therefore no arrangement would be permitted in relation to any company.

The Finance Bill 2014 amended the company residence rules such that from 01 January 2015 any company incorporated in the State will be Irish tax resident. This amendment brought Ireland's company tax residence rules into line with the majority of EU and OECD member states. The common law "management and control" test also continues to apply to companies that are not incorporated in the State and that are centrally managed and controlled in the State. To ensure that this change did not negatively impact on other related group companies who have real and substantial operations in Ireland, a six year transitioning period was provided for to give these groups a reasonable timeframe to plan and re-organise their business structures to take account of this change.