Big changes on way for PO Savings Certs and Bonds ?

D

Daithi55

Guest
EU Commission requests change in Irish savings cert tax exemption



Commission requests Ireland to amend discriminatory tax provisions relating to Savings Certificates and to certain Government, State-issued and State-guaranteed securities.

The European Commission has formally requested Ireland to amend the discriminatory treatment resulting from a tax exemption for interest on savings certificates issued by the Irish State and the possibility of a tax exemption of certain Government, State-issued and State-guaranteed securities, while interest on similar foreign certificates and securities is not tax exempt.
 
Do many people have these products? What's the total issued value I wonder?
 
The question is how the discrimination is resolved. As I understand it, the EUs case is that Ireland cannot operate one scheme for Irish institutions and another for foreign ones. The government therefore have two options: remove the tax break on Irish schemes or recognise the tax breaks on foreign schemes.

As an aside, there has been a rumour circulating that DIRT will be moved to the marginal rate from the flat rate of 20%. If this is the case, for a top rate tax payer, the tax free return on savings bonds looks more attractive (6+% effective compared with taxed institutions).
 
You must log in or register to reply here.
Back
Top