It would be good if we had at least 1 TD who understands this change and is in the Dail raising it.
Article is based on the reply to the parliamentary question so no new information no anyone who's already seen that. Article repeats that it will take multiple budget cycles to change due to the "magnitude" of the changes. (Changes proposed are to align exit tax with CGT, and to remove deemed disposal.)Does the (paywalled) article say anything different than Pascal said here?
I don't see why this should be the case. We previously didn't have deemed disposal and we've had lower tax rates before. There's nothing new here.it will take multiple budget cycles to change due to the "magnitude" of the changes.
Revenue is a competent organisation at tax administration.Revenue is one of the best run areas of government with some of the sharpest people I’ve encountered, you can be absolutely certain that a lack of comprehension of this basic premise is not a factor.
Indeed! They were mainly reponsible for the recent unlimited PRSA contributions loophole mess against the better judgement of others who were involved and overruled!They don’t have much expertise in economics or any kind of long-term modelling.
Someone wiser than me said “Revenue will never admit they made a mistake.”They were mainly reponsible for the recent unlimited PRSA contributions loophole mess against the better judgement of others who were involved and overruled!
From their point of view (not mine) the magnitude is probably due toI don't see why this should be the case. We previously didn't have deemed disposal and we've had lower tax rates before
sure that would be worse to administer, then you have 2 different tax rates , before and after and deemed disposal still in place. The problem is not the level of the tax but the deemed disposal itself that is what is stopping people from investing in ETFs. Remember the spotlight is on Ireland because we have 70% of the ETFs worth trillions domiciled in Ireland but only a tiny proportion of that held by irish people. Obviously Europe will be asking what is happening here and probably is already. The simplest solution is to abolish deemed disposal outright so anyone selling an ETF from a certain date just pays the 33% cgt on disposal like any other asset, if someone has already paid the deemed disposal then they get a credit offset against the 33% CGT. Probably the revenue will be down money initially but it is still small fry in comparison to the corporate tax surpluses they have been reaping since covid. They need to look at the bigger picture and the bigger picture is that there are trillions worth of ETFs domiciled here and that is also the focus of EuropeIf exit tax and deemed disposal was 23% then people might live with that, and I wonder would Revenue have been so eager to classify ETFs as funds instead of shares if the rate of tax was lower for funds than shares.
They already have the this on place from when they increased the tax rates, or for cases where the growth has reduced between the deemed exit tax and the actual disposal.The simplest solution is to abolish deemed disposal outright so anyone selling an ETF from a certain date just pays the 33% cgt on disposal like any other asset, if someone has already paid the deemed disposal then they get a credit offset against the 33% CGT.