I move amendment No. 125:
In page 160, lines 15 to 20, to delete subsection (8) and substitute the following:
"(8) This section shall have effect in relation to gifts and inheritances taken on or after the 12th day of April, 1995.".
SECTION 147.
Amendment agreed to.
Section 147, as amended, agreed to.
NEW SECTION.
I move amendment No. 126:
In page 160, before section 148, but in Part VI, to insert the following new section:
148.—Section 146 of the Finance Act, 1994 is hereby amended by the insertion of the following subsections after subsection (4):
‘(4A) In the case of an application for registration, the provisions of this section shall only apply where the property was the subject of a gift on or after 28 February, 1974 or was the subject of an inheritance on or after 1 April, 1975 and in all other cases shall only apply to any application to be registered as owner of property where the person applying to be registered as owner was entitled in possession on or after 11 April, 1994:
Provided that this section shall not apply, in its entirety, to any application which is
(a) property which is valued on the date of application pursuant to the provisions of the Act of 1964 at a sum not exceeding £11,880, and
(b) property which comprises less than one hectare.
(4B) Without prejudice to the foregoing provisions, in any case where the Revenue Commissioners are satisfied that the person applying to be registered as owner of the property acquired the title under the Act of 1964 otherwise than by gift or inheritance from a relative and in such circumstances that, had the spouse of the person applying to be registered been the person applying to be registered as owner, would have acquired title under the Act of 1964 otherwise than by gift or inheritance from a relative the Commissioners shall issue a certificate for the purposes of subsection (1) subject to such qualifications as the Commissioners think fit, and shall not be a certificate for any other purpose.'.".
This amendment is in my name but Deputy Dermot Ahern will speak on it.
The Finance Act, 1994 introduced a provision in relation to conveyancing, which required certificates to be produced in relation to the registration of what is called squatter's title. This has caused difficulty in the conveyancing world. I know the Department is aware of the difficulties of this situation. The purpose of the amendment is, in effect, to take care of a situation where, for example, two neighbours swap a piece of land and would be obliged, if this section were to remain as it is, to go through a whole rigmarole of applying for certificates for inheritance tax, probate tax and so on. I ask the Minister to consider this proposed new section. It is well drafted and is not trying to encourage tax evasion. It is attempting to take care of minimal situations.
I suggest that the amendment be tabled again on Report Stage.
I accept that proposal. We accept the spirit of the amendment but we have technical problems with the drafting.
I will put it down again on Report Stage.
Amendment, by leave, withdrawn.
NEW SECTION.
I move amendment No. 126a:
In page 161, before section 152, but in Chapter 1, to insert the following new section:
"152.—Section 154 of the Finance Act, 1994 is hereby amended insofar as it has application to an employment situated in Northern Ireland:
(a) (i) by the substitution of "5 consecutive days" for "14 consecutive days" in paragraph (a) of subsection (2),
(ii) by the substitution of the following paragraph for paragraph (b) of subsection (2):
‘(b) one of which the individual concerned is absent from the State, and present in Northern Ireland for at least eight consecutive hours during the day.', and
(b) by the insertion of the following proviso after paragraph (c) of the proviso in subsection 3:
‘Provided that paragraph (b) (i) shall not apply to an employment which is subject to the provisions of part III of Schedule 6 to the Income Tax Act, 1967, solely by reason of the employment being situated or exercised solely in Northern Ireland.'.".
This amendment relates to cross Border taxation. Deputies from Border areas will be aware that a controversy is growing about people who live in the South and work in the North. This amendment is put down to stimulate discussion on this and to allow the Minister to bring forward his own proposals. I realise he has established a working group in this regard and is seeking submissions.
The amendment seeks to provide that a proportionate part of the Northern Ireland income will be regarded for tax purposes. We could have gone the whole way and suggested a total exemption. However, we accept the difficulties in this area. We ask the Minister to look carefully at the amendment.
I am happy to give that assurance. I appreciate the work the Deputy has done and his concern and that of other Border Deputies about this matter. In his professional capacity he will be aware of the complexities. We are trying to work on it.
I am not in a position to accept the amendment. We will try to introduce provisions next year.
It is possible that we will re-introduce the amendment on Report Stage and have a better debate on it.
Amendment, by leave, withdrawn.
I am required to put the following question according to the order of the Dáil on 9 May: "That the amendments set down by the Minister for Finance to Parts III, IV, V and VI and Chapter 1 of Part VII that are not disposed of are hereby made to the Bill and in respect of each of the sections undisposed of in the said Parts and Chapter that the section or, as appropriate, the section as amended is hereby agreed to."
Question put.
The Select Committee divided: Tá, 12; Níl, 9.
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Tá. |
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Broughan, Tommy. |
Mitchell, Jim. |
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Connaughton, Paul. |
Penrose, William. |
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Finucane, Michael. |
Quinn, Ruairí. |
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Kenny, Seán. |
Ring, Michael. |
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McCormack, Pádraic. |
Ryan, John. |
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McDowell, Derek. |
Sheehan, P. J. |
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Níl. |
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Ahern, Michael. |
McDowell, Michael. |
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Ahern, Dermot. |
O'Hanlon, Rory. |
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Cullen, Martin. |
O'Keeffe, Ned. |
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Lawlor, Liam. |
Wallace, Dan. |
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McCreevy, Charlie. |
Question declared carried.
Sitting suspended at 1.42 p.m. and resumed at 2.30 p.m.