This deals with VAT. I recall on Second Stage there was a change to one of these sections to take account of the directive. We said we needed to include a specific section this year. Is it intended to consolidate the VAT law in due course?
SECTION 78.
Question proposed: "That section 78 stand part of the Bill."
We are trying to tidy up this area. The question about consolidating VAT would have to be considered. We have no proposals for consolidation at this stage. The VAT system is transitional at present and it is a complex area.
Is it possible to bring it together in a consolidation Bill? I urge the Minister to consider doing that because it has become unwieldy over the past few years.
My first focus was to consolidate the 1967 legislation and we are making good progress in that regard. Opposition Deputies are welcome to go to Dublin Castle to examine the work being done. That is taking up a lot of resources. When it is completed in May next year we hope to try to consolidate VAT which, as I have been told by many traders, is highly complex. We are not masters in this regard because it is also EU law.
Section 78 (a) (ii) is a substitute for paragraph (c). It states:
the handing over by a person (in this paragraph referred to as the developer) to another person of immovable goods which have been developed from goods entrusted to the developer by that other person for the purpose of such development, whether or not the developer has supplied any part of the goods used,",
In other words, if the developer hands over a building which has been developed from goods given to him by the occupier.
I am informed there is no effective change to the redrafting of the same piece. We will need to take advice and maybe go into private session if the Deputy wants clarification on this because of its complexity.
Arising from our discussion last year on VAT and the letting of property, I suggested that the Revenue Commissioners produce a booklet, which they did. It is the most complex area of value added tax law and, despite the number of times certain areas of it have been explained to me by many eminent advisers and inspectors of taxes, I still get confused. There was something in the post some time ago, which will be welcomed by people who practice in this area. As Deputy Michael McDowell said, it is the one area of VAT law which is exceptionally difficult to comprehend.
We have taken note of that and we will consider how we can communicate it. It is in the State's and all of our interests, as taxpayers, that the law is as clear and as easily followed as possible. Nobody has a vested interest in complexity.
Question put and agreed to.
Sections 79 and 80 agreed to.