Are you coming to that conclusion based on just this the quoted text? Seems to me they’re not recommending anything more than reviewing how these things are taxed. But when so much of the report is about raising taxes and taxing wealth, with the suggestion on this point specifically that it might be revenue-raising, I cannot see why they would be advocating for a 33% rated tax over the current 41%. Are you sure they’re not thinking that exit tax and deemed disposal should actually be broadened out to other investments - not suggesting they are, but you could read it either way.The Commission on Taxation seem to be recommending the scrapping of Exit tax and replacing it with CGT.
Hopefully the government will take this recommendation onboard.
6.6 The Commission recommends that a working group should be established to review and propose changes to the taxation of funds, life assurance policies and other investment products with the goals of simplification and harmonisation where possible. The working group should be established with a net revenue-raising or neutral mandate.
thats why the whole exit tax regime was ridiculous and unfair because it differentiated between different assets for this type of tax. You had to pay a deemed disposal tax every 8 years if you owned a collective investment fund or an ETF but not if you owned a portfolio of shares, an investment property, your company shares, or bonds.Are you sure they’re not thinking that exit tax and deemed disposal should actually be broadened out to other investments - not suggesting they are, but you could read it either way.
The Netherlands is not a million miles from it I think? They have a deemed annual return every year on investments. They also tax the whole asset, not just the gain. Their rates etc are different go course.Nobody else In Europe has this tax not even the most socialist states
The average joe doesn't want to invest themselves because they don't have knowledge of investments and aren't overly interested in learning about it. How investments are taxed isn't stopping the average joe from investing. It is stopping the above average joe from investing but they are still capable of doing it themselves if they want to because they have an interest in it and are willing to spend the time learning how to do it.Can't see this be adopted. Too many vested interests don't want the average joe investing themselves.
ETFs and regular investing go to together - Irish investors are being put off regular investing in ETFs due to deemed disposal.The average joe doesn't want to invest themselves because they don't have knowledge of investments and aren't overly interested in learning about it. How investments are taxed isn't stopping the average joe from investing. It is stopping the above average joe from investing but they are still capable of doing it themselves if they want to because they have an interest in it and are willing to spend the time learning how to do it.
My understanding is that it's a type of wealth tax on investments. For example, you own an apartment valued at 200k with a mortgage of 100k. You are taxed on the net worth i.e. 100k. There would be a deemed return of say 4% and this is taxed at say 30% so effectively you would be taxed on 1.2% of the net worth of the asset, so €1200 per annum.The Netherlands is not a million miles from it I think? They have a deemed annual return every year on investments. They also tax the whole asset, not just the gain. Their rates etc are different go course.
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