Will ISA's be coming to Ireland anytime soon?

There are a lot more intangible benefits such as improvements in financial literacy, wealth effects, increased spending (VAT) as people spend their gains etc. I've lost count of the amount of people who've talked about investing but end up just doing nothing
I think you can include pascal donohue in that about needing to improve his financial literacy. He was patently wrong in an answer to a parliamentary question about ETF taxatation a few years ago, or else dileberately misleading
 
page 71

There may be merit in exploring an incentivised savings and investment account in due course. However, it is the firm view of the Review Team that the measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these proposals address the most substantive issues raised by the COTW, the public consultation and during stakeholder engagement. Adding an additional tax regime for savings and investment to an already complex framework would not on its own assist in simplification and harmonisation for taxpayers.
 
@Protocol Yes, because there is accurate data is available from the Life Assurance Companies. They do the work for Revenue/DoF.

Theres' no accurate data on how much is invested in ETFs (last time Central Bank looked at it was 2019) and no one can tell you how much Exit Tax is collected on EFTs. Not a really sound basis for the review team to be working off.


Gerard

www.bond.ie
 
Last edited:
Theres' no accurate data on how much is invested in ETFs (last time Central Bank looked at it was 2019) and no one can tell you how much Exit Tax is collected on EFTs. Not a really sound basis for the review team to be working off.
Sure revenue should have the data for self declared ETFs and exit tax since you have to complete that on form11, if they haven't got that data that's their own fault. In any case as already mentioned it is likely to be immaterial anyway since the numbers are so small probably in the 10s of millions at most.
The review team can only work off the data they have been given. If a state agency like revenue can't provide it that should not reduce the status and importance of that review should it?
 
...it is the firm view of the Review Team that the measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these proposals address the most substantive issues raised by the COTW, the public consultation and during stakeholder engagement. Adding an additional tax regime for savings and investment to an already complex framework would not on its own assist in simplification and harmonisation for taxpayers.
Nonsense, having an ISA means you don't need to concern yourself with the tax treatment of any instrument you have within it. That's the epitome of simplification and harmonization.
 
Sure revenue should have the data for self declared ETFs and exit tax since you have to complete that on form11, if they haven't got that data that's their own fault.
For Life Assurance policies, revenue get details of all the premiums paid from the life assurance levy returns and details of the exit tax is also returned by the life companies. For EFTs and the likes, they rely on self declaration which is never going to capture everything.
 
That's the epitome of simplification and harmonization.
It's an additional investment type. While the product itself would have simple taxation, it adds additional complication to the whole picture. You would be adding an ISA tax regime to:
  • LAET
  • Old basis life policies
  • Pension products
  • Direct share investment
  • ETFs domiciled in EU, EEA or OECD
  • ETFs domiciled in other territories
  • EIIS schemes
  • Whatever else I can't be bothered typing
 
For Life Assurance policies, revenue get details of all the premiums paid from the life assurance levy returns and details of the exit tax is also returned by the life companies. For EFTs and the likes, they rely on self declaration which is never going to capture everything
But they have the data of those self declarations of exit tax as you have to enter it on the form11, are you suggesting that revenue don't have the where with all to harvest this themselves from their own data?
 
You would be adding an ISA tax regime to:
  • LAET
  • Old basis life policies
  • Pension products
  • Direct share investment
  • ETFs domiciled in EU, EEA or OECD
  • ETFs domiciled in other territories
  • EIIS schemes
Well if they got rid of deemed disposal and exit tax and combined it with CGT and dividend taxes you would remove most of those complexities. All of this "complexity " is self inflicted and easily rectified ,it's not quantum mechanics we are dealing with here
 
it adds additional complication to the whole picture.
Except that wasn't the point the Review Team were making, the beneficiaries of the 'simplification and harmonization' are apparently the individual taxpayers. As an individual myself (!), having access to an ISA where I don't need to be concerned about what the tax treatment of the product contained within it is, meets that brief in a way that self declaring CGT and PAYE/USC/PRSI on dividends simply doesn't.

There seems to be a lack of pragmatism at play, the Draghi report calls for more investment by individuals. My concern is that those in power here may think that changing the tax treatment of certain financial products is going to move the dial on investing, and fulfil the spirit of what the SIU is seeking to achieve (for the record, I hope I'm wrong about that).

If anyone happens to be reading this who has any sway on the matter, I'll draw your attention to the following from the SIU website:

"Experience in some Member States has shown the potential for savings and investments accounts to boost retail participation in capital markets, especially when such accounts are matched with appropriate incentives. The Commission will develop a European blueprint for savings and investments accounts or products for retail investors based on existing national best practices, including recommendations to Member States on the tax treatment for such investment accounts. Such savings or investments accounts, combined with adequate tax treatment, can widen the pool of funding available for EU companies and help to meet EU investment needs in the green and digital transitions, as well as in defense."

 
Back
Top