Dáil Éireann Debate, Thursday - 23 January 2014
56. Deputy Terence Flanagan asked the Minister for Finance his views on the success of Islamic funds in Ireland; his further views on the tax reliefs given; and if he will make a statement on the matter. [3414/14]
View answerThe internationally-traded financial services sector is a valuable contributor to both employment and tax revenues in Ireland, employing an estimated 33,000 people, and generating approximately €1 billion in tax revenue annually.
The success of this sector is founded on the experience and knowledge developed over the last 25 years, and on the ability of the sector to adapt and remain at the forefront of international developments. Recent examples of this include the development of Islamic Finance and Green Finance initiatives, attracting new business lines to the Irish market.
A European Central Bank publication in June 2013 confirmed that Ireland is now a significant location for Islamic funds, with an estimated 20% of the Islamic funds market outside of the Middle East being located here. The first Irish domiciled Shari a-compliant UCIT was established in 2012 by CIMB Islamic Asset Management and this product is now offered in the UK, Germany and France under the UCITS EU passport. At the end of 2013, the Irish Stock Exchange (ISE) had some $11bn of outstanding Sukuk issuance and there were 13 Shari’a compliant funds listed on the ISE. It should be noted that no specific tax reliefs are given for Islamic funds, and the tax measures for specified financial transactions introduced in Finance Act 2010 did not relate to investment funds. Those provisions related to other types of financial products, and their purpose was to ensure that such financial products structured along Islamic finance principles are taxed in the same way as conventional financial products.
