Pearse Doherty
Ceist:306. Deputy Pearse Doherty asked the Minister for Finance the cost of exempting IREF funds from VAT on property management fees; and if he will make a statement on the matter. [28336/17]
Amharc ar fhreagraTuesday, 20 June 2017
Ceisteanna (306)
Freagraí scríofa
I am informed by the Revenue Commissioners that the information furnished on VAT returns does not require the yield from particular trades or activities to be separately identified, the VAT incurred on property management fees is not readily identifiable. Therefore, it is not possible to provide the cost of exempting IREF funds from VAT on property management fees.
The Deputy may wish to note that Irish VAT law provides that the management of an undertaking specified in paragraph 6(2) of Schedule 1 of the VAT Consolidation Act 2010 is an exempt activity. Paragraph 6(4) of Schedule 1 sets out that the management of that undertaking can consist of “any one or more of the 3 functions listed in Annex II of Directive No. 85/611/EEC of the European Parliament and Council (being the functions included in the activity of collective portfolio management) where the relevant function is supplied by the person who has responsibility for carrying out that function in respect of the undertaking”. Annex II provides for a non-exhaustive list of the functions which are included in the activity of management of special investment funds and of investment companies. However, property management services are not included on that list.