Dáil Éireann Debate, Thursday - 14 October 2004
74 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. [24664/04]
View answerI am informed by the Revenue Commissioners that a further 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 took place in Dublin on 10 and 11 May 2004. The negotiations on a protocol, designed to address the issues, are at an advanced stage and it is hoped that the formal signature of the protocol will take place in the coming months. The protocol would then be ratified during 2005.
It should also be noted that 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. This anti-avoidance measure was announced in the 2003 budget on 4 December 2002, with effect from that date.
