asked the Minister for Finance if DIRT tax will have to be phased out following the abolition of exchange controls from January 1989.
Written Answers - Dirt Tax.
42.
Exchange controls are not being abolished from January 1989. The recent announcement indicated the Government's intention to remove, from 1 January 1989, all restrictions on purchases by Irish residents of medium and long term foreign securities. While this is a major relaxation, Ireland will still have a distance to go before complete liberalisation of capital movements is achieved: controls will continue in a number of important areas, including a prohibition on the operation of current and deposit accounts abroad other than those approved for trading purposes. Under EC legislation, Ireland has until the end of 1992 to remove these particular controls. The question of phasing out DIRT tax from January 1989 does not, therefore, arise. The general taxation implications of the freeing of capital movements are at present under consideration by the EC Commission.