I propose to take Questions Nos. 57, 58 and 73 to 75, inclusive, together.
The Department of Finance has been assessing and preparing for the impact of Brexit since before the referendum on 23 June 2016. This work is being carried out within the whole-of-Government structures established by the Department of Foreign Affairs. It includes scoping legislative requirements and preparing draft legislation for all Brexit scenarios. As part of this work, the Department of Finance is working closely with the Revenue Commissioners on the implications of Brexit for the tax code to ensure that any necessary legislative arrangements are put in place. This work will be progressed as part of an overall Government legislative programme for managing Brexit.
In addition to the wider Governmental work, the Department undertakes a rolling analysis focusing on the key Brexit related policy issues, which includes taxation. The implications of Brexit on the tax code was analysed in two papers as part of the Tax Strategy Group (TSG) in 2017 and 2018. TSG 17-09 – BREXIT Taxation Issues and TSG 18-08 – Brexit.
On 25 November 2018 the European Council endorsed the Agreement on the withdrawal of the UK from the EU, and approved the Political Declaration setting out the framework for the future relationship. The Irish Government has been clear that it seeks the closest possible relationship between the EU and the UK, post Brexit, to ensure that the impact on our trade and economy is as minimal as possible.
As part of the Withdrawal Agreement, a transition period has been agreed within the context of the UK’s withdrawal from the EU, during which the EU and the UK will negotiate an agreement on their future relationship. During the transition period, the whole of the EU acquis, will apply to the UK which will preserve the status quo during that period, thus avoiding any gaps or cliff edge effects between the UK leaving the EU and the intervening period before a future relationship agreement enters into force. It is therefore not appropriate to comment or speculate on the future EU-UK relationship and its implications for taxation or indeed any specific tax reliefs.