Dáil Éireann Debate, Wednesday - 29 May 2013
82. Deputy Pearse Doherty asked the Minister for Finance the estimated loss to the Exchequer from the corporation tax exemption from capital gains tax on gains arising from the disposal of substantial shareholdings where the Irish parented group is engaged in trading activities and the subsidiary is resident in an EU member state or a tax treaty country. [26071/13]
View answerGains and losses arising from disposals of certain shareholdings are disregarded for tax purposes, provided that the conditions applying to the relief are fully satisfied. The exemption was introduced in 2004, and is contained in S626B TCA 1997. The purpose of its introduction was to encourage the establishment of regional headquarters and holding companies in Ireland. Most other EU Member States have similar provisions and the EU Commission approved the measure from a State aid perspective. Disposals coming within the scope of the relief are ignored for tax purposes, while losses on disposals are not available for set-off. I am advised by the Revenue Commissioners that, as there is no requirement to make a claim, it is not possible to provide the Deputy with the information requested.
