Finance Bill 2017 passed by the Dáil

Nov 27, 2017

Finance Bill 2017 was passed by the Dáil last week and now moves to the Seanad.  During the debate on the proposed Report Stage amendment relating to section 135 Taxes Consolidation Act 1997 and the tax treatment of certain share disposals involving two companies,  Minister Michael Darcy commented “that amendment, which now forms section 22 of the Finance Bill, has no impact on bona fide management buy-outs, buy-ins or third party SME company purchases.”

Debating section 22 of the Finance Bill, Minister Darcy said, amongst other things:

Bona fide financing arrangements entered into by the purchaser to fund the purchase of the shares are outside of the scope of the new provisions. Therefore, on the basis that the proposed amendment to section 135 does apply to bona fide management buy-out transactions, I do not propose to accept this amendment. I am advised that Revenue will be issuing comprehensive guidance once the provision has been enacted and that should meet the Deputy's concerns.”

There has been no change to the provision as introduced by a Committee Stage amendment.

You can read the full debate on the proposed Report Stage amendment to section 22 of the Bill, and other proposed amendments, on the Oireachtas website

As we reported in Chartered Accountants Tax eNews last week, we have been communicating with Revenue and government officials on members’ concerns on the wide impact of this measure.  We will request that the “comprehensive guidance” promised from Revenue is issued immediately. 

Finance Bill 2017 as passed by the Dáil is available from the Oireachtas website.  The Bill is scheduled for debate in the Seanad tomorrow, Tuesday 28 November 2017.