In response to previous parliamentary questions on this matter, I stated that a first round of negotiations between the authorities in Portugal and the Revenue Commissioners for a protocol to amend certain provisions of the Ireland-Portugal double taxation convention was held in Lisbon in May 2003. I am informed by the Revenue Commissioners that a second round of negotiations took place in Dublin in May 2004. The Revenue Commissioners are still in discussion with the Portuguese authorities and the Deputy will, therefore, appreciate that it is not possible at this stage of the negotiations to comment further on their likely outcome.
As I also mentioned in my previous replies to questions on this matter, section 69 of the Finance Act 2003 amended Irish domestic law to impose a charge to capital gains tax on an individual in respect of a deemed disposal of certain assets 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. I announced this anti-avoidance measure in my 2003 budget on 4 December 2002 and it had effect from that date.