Michael Noonan
Question:22 Mr. Noonan (Limerick East) asked the Minister for Finance if he will outline the effect recent changes in German tax law will have on the International Financial Services Centre.
Written Answers. - German Tax Law.
The changes in Germany's Foreign Tax Act affect certain German investments carried out by companies at the centre. The new law alters the application of certain provisions in the German/Irish Double Tax Agreement, about which the Irish Government are concerned and have made known their disappointment to the German authorities. Now that the legislation has passed, it is necessary to determine how it will operate in practice and this is currently being examined, both by the companies concerned and the relevant agencies.
I am hopeful that the companies concerned will be able to continue to carry on business at the centre.
I am confident that the difficulties created by the German tax Act will not permanently damage the development of the centre generally.