TaxSource Total

Here you can access relevant source documents which support the summaries of key tax developments in Ireland, the UK and internationally

Source documents include:

  • Chartered Accountants Ireland’s representations and submissions
  • published documents by the Irish Revenue, UK HMRC, EU Commission and OECD
  • other government documents

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Request for legislative amendment in Finance Act 2020

Introduction

On behalf of the CCAB-I, I wish to highlight several matters requiring legislative amendment in Finance Act 2020. These matters are separate to those raised in the CCAB-I Pre-Budget Submission. The matters are as follows:

1. Stock Lending and Repurchase (Repo) Arrangements

We recommend that the legislation introduced in sections 753A to 753F TCA 1997, as part of Finance Act 2019, be amended to appropriately cater for the tax treatment of stock lending and repo transactions in line with the Revenue Statement of Practice in operation up to the enactment of Finance Bill 2019. We set out a number of issues arising from the changes under Finance Act 2019 in a letter to Revenue along with mark-ups to the draft Tax and Duty Manual on this topic. However, it is more appropriate for these issues to be addressed in a legislative amendment to enable the historic treatment to continue to apply with certainty.

2. Migration of Crest to Euroclear Bank

From March 2021, trading in Irish shares will no longer occur under the Crest system and trading will instead take place under the Euroclear Bank model in Belgium. The clear intention of all parties is that this migration from the Crest to the Euroclear platforms on 31 March next would not crystallise any taxation charges. We understand from the recent TALC Technical and Capital Taxes meeting that there are uncertainties emerging particularly in relation to Stamp Duty1 and Dividend Withholding Tax2. We ask that the legislative changes necessary to ensure tax neutrality relative to the historic position are introduced in Finance Act 2020.

3. Stamp Duty Exemption for Aircraft Leasing Share Transactions

Traditionally Revenue interpreted the exemption for aircraft disposal under Section 113(b) SDCA 1999 to apply to the transfer of shares in aircraft leasing companies subject to certain conditions. However, we understand that this interpretation may not be sustainable without a legislation change to support the approach taken by Revenue in the past. We would request that the legislation be changed to extend the stamp duty exemption to shares deriving the greater part of their value from aircraft, or any part of an aircraft.

4. Interest Limitation Rules

In view of disruption caused by Covid-19 restrictions to the Irish economy and the delay in forming a new Government, the implementation of the Interest Limitation rules should be delayed until 1 January 2022. This will allow time for the publication of a detailed Feedback Statement in the autumn to facilitate a comprehensive dialogue with stakeholders to as the basis for comprehensive legislation on this matter.

1 Section 11(2) Migration of Participating Securities Act 2019, Section 3(3)(b) Migration of Participating Securities Act 2019 and Part 6 SDCA 1999.

2 Section 172A, Section 172A(1), Section 172C, Section 172D, Section 172E(2) TCA 1997.