Vol. 564 No. 5
70 Mr. Quinn asked the Minister for Finance the progress made by the Revenue Commissioners in their discussions with the Portuguese authorities with a view to closing off a tax loophole which allows those who sell off assets here to avoid tax by taking up residence in such countries as Portugal; and if he will make a statement on the matter. [9733/03]
I am advised by the Revenue Commissioners that they are in contact with the Portuguese authorities regarding the commencement of negotiations for a protocol to the Ireland-Portugal double taxation convention which has been in force since 1995. First round negotiations are expected to take place towards the end of May 2003.
The Deputy will also be aware of an amendment to Irish domestic law that is contained in the Finance Act 2003. In certain circumstances, section 69 of the Finance Act will impose a capital gains tax charge in respect of a deemed disposal of certain assets owned by an individual on the last day of the last year of assessment for which the individual is taxable in the State, prior to becoming taxable elsewhere, where the individual disposes of these assets while resident outside the State and returns to the State within five years.
