Select Committee on Finance and General Affairs debate -
Wednesday, 26 May 1993

SECTION 41.

Mr. B. Ahern

I move amendment No. 128:

In page 80, subsection (1), lines 46 and 47, to delete "a person or persons (in this section referred to as the ‘settlor' or the ‘settlors')" and substitute "one or more than one settlor, or any trust arising under a testamentary disposition.".

This is purely a technical amendment which removes a contradiction which exists in section 41. The definition of "trust" in subsection (1) refers to a trust established by deed and the definition of "foreign trust" in paragraph (b) of subsection (1) also envisages a situation where a trust is created under a will and that is a testamentary disposition. I commend the amendment.

Mr. N. O'Keeffe

Is that restricted to commercial banks and other financial institutions? The trustee base should be broadened to include accountants and solicitors in that area. Would the Minister make a comment on why it is restricted to banks and stockbrokers?

Mr. Yates

My understanding is that the exemption from taxation is where an Irish person operates the foreign trust as opposed to the trust being owned by an Irish person. Is that the point? In other words, it is not an exception for foreign trusts that are controlled or set up by Irish registered individuals.

Mr. B. Ahern

The position is that by the end of 1993 it is hoped that there will be an amendment to the Central Bank Act which will define the definitions of "trusts" and "trustees". That should overcome the point. I understood Deputy O'Keeffe to say he is wondering why these areas are not included. They are regulated by the Central Bank and the stockbrokers and banking institutions are part of Central Bank regulatory groups. That is the only reason.

Amendment agreed to.

Section 41, as amended, agreed to.

Section 42 agreed to.

Sitting suspended at 1.30 p.m. and resumed at 2.30 p.m.

Sections 43 and 44 agreed to.

SECTION 45.

Mr. B. Ahern

I move amendment No. 129:

In page 83, line 13, to delete "January" and substitute "July".

This amendment concerns the payment of vehicle registration tax in respect of cars used solely for short term car-hire. The purpose of the amendment is to ensure that repayments can be made in respect of cars in car-hire at the time of the passing of the Bill or going into car-hire up to the end of June 1993, which were declared for registration since January 1993 by a person other than the car-hire company. It is aimed to assist the car-hire industry which over the past few years have experienced some difficulties. Last year we successfully alleviated the problem and there was no difficulty as had been expected. This year we have made a number of moves to rectify this problem in the long term and this is one of them.

Mr. Yates

I welcome this measure. It is a recognition of the difficulties not only of the car-hire sector but of the tourism industry. I regret the Minister did not see fit to defer also the VAT increase, which we will come to later, from 10 per cent to 12.5 per cent for the tourism sector because many tourism products had already been priced and as they could not increase the price operators have had to absorb the VAT increase themselves.

Amendment agreed to.

Section 45, as amended, agreed to.