Newspaper articles - 10th February, 2012

Rabbitte favours tougher tax regime for onshore exploration companies - Irish Times

COMPANIES WHICH find oil or gas onshore may be subject to a different tax regime from those which explore offshore, Minister for Energy Pat Rabbitte has said. Mr Rabbitte defended the current taxation regime which critics say is too lenient towards oil and gas companies, but said he might take a different view to those who operate onshore because the costs of exploration are lower. He said that when the current regime was included in the Finance Act of 2008 by his predecessor Eamon Ryan, the prospect of onshore drilling was not contemplated

http://www.irishtimes.com/newspaper/ireland/2012/0210/1224311572806.html

 

Qualifying for mortgage tax relief on a site - Irish Independent

I read your recent section on mortgage tax relief and note you made no reference to sites. I have urban sites for sale in Tralee with full planning permission and all services are laid on. If sold, will these sites qualify for the extra mortgage relief for the purchaser?  In order to stimulate the property market/help out mortgage beleaguered payers (take your pick), Finance Minister Michael Noonan put forward some extra tax reliefs in his budget for first time buyers and property purchases made during 2012. First time buyers in 2012 will get mortgage interest relief at 25pc for the first two years, 22.5pc for years three and four and 20pc for years six and seven. The upper thresholds for tax relief are €20,000 for married couples, widows or those in civil partnerships and €10,000 for single people. Non-first time buyers in 2012 will get mortgage interest relief at 15pc to an upper threshold of €6,000 for people who are married, in a civil partnership or widowed and €3,000 for singletons

http://www.independent.ie/lifestyle/property-plus/qualifying-for-mortgage-tax-relief-on-a-site-3015883.html

 

Change in tax rates forces diageo to write-off €624m - Irish Examiner

A change in Dutch tax rates has resulted in Guinness owner — Diageo — writing off €624 million in deferred tax assets. Diageo, which own Guinness, Baileys and Bushmills finalised tax negotiations with authorities in the Netherlands, resulting in a loss of future tax reductions to the value of over half-a-billion euro.  Diageo said that the negotiations had resulted in a promise to keep the company’s effective tax rate at about 18%, compared to 21.8% in the second half of 2010.  Despite this, Diageo have reported solid growth globally. In Western Europe, sales declined by 2%, but in Ireland Diageo maintained dominance, with one-in -three long drinks sold in bars being Guinness

http://www.irishexaminer.com/ireland/change-in-tax-rates-forces-diageo-to-write-off-624m-183270.html

 

Incentives for staff 'knocking on doors' selling Irish goods - Irish Times

EMERGING MARKETS: WORKERS WHO spend long periods selling Irish goods and services in emerging markets will get tax exemptions worth up to €35,000 a year under measures proposed in the Finance Bill. The legislation includes a number of measures that Minister for Finance Michael Noonan claimed yesterday were aimed at creating jobs and aiding Irish companies focused on exporting goods and services. They include a proposed tax exemption for staff who spend long periods in the so-called Bric countries – Brazil, Russia, India, China – and South Africa selling or promoting goods and services made or provided by their employer.

http://www.irishtimes.com/newspaper/finance/2012/0209/1224311519226.html

 

Measures will aid property market and job creation - Irish Examiner

A suite of measures to boost the property market and job creation have been announced by the finance minister. Tax breaks for high-paid foreign workers are among the schemes which the Government hopes will boost overall employment and investment in Ireland. Publishing the Finance Bill 2012, Michael Noonan outlined changes to a range of taxes and reliefs — many of which were flagged in the budget. Further mortgage interest relief was announced for first-time buyers who purchased during the boom or who buy this year.

http://www.irishexaminer.com/ireland/measures-will-aid-property-market-and-job-creation-183159.html

 

No surprises, no budget u-turns and no major sweeteners - Irish Examiner

UNVEILING the finance bill yesterday, Michael Noonan made the distinction between his version and those produced by his predecessor Charlie McCreevy, "when it was almost a second budget". This document had no major surprises, no budget U-turns, and no major sweeteners thrown in to win support from a hurting public. It was, the minister said, rather boringly outlining in more legal detail the measures announced by him on the floor of the Dáil last December. Mr Noonan was trying to play down the significance of the legal document and avoid rekindling the angry debate about the austerity measures announced almost two months ago.

http://www.examiner.ie/ireland/no-surprises-no-budget-u-turns-and-no-major-sweeteners-183162.html

 

Noonans tax relief for top bosses to help job creation - Irish Independent

Finance Minister Michael Noonan yesterday defended his new tax breaks for high-paid executives from foreign companies coming to the country. Mr Noonan expected up to 100 executives with skills not available in Ireland to avail of the tax relief, which makes 30pc of their income between €75,000 and €500,000 exempt from income tax. He said the measure would cost up to €5m a year. But the idea was to attract skilled workers to head up new sections of a company and create up to 50 jobs at a time.

http://www.independent.ie/national-news/noonans-tax-relief-for-top-bosses-to-help-job-creation-3014687.html

 

Elite foreign workers to save on tax - Irish Examiner

High-earning foreign executives who relocate to this country for several years could escape hundreds of thousands of euro in taxes under incentives unveiled by Michael Noonan. The finance minister yesterday announced a series of measures aimed at increasing Ireland’s attractiveness as a place to do business and creating employment.

They included generous tax breaks for key staff who relocate from abroad to the Irish-based operations of their employer for between one and five years and who earn more than €75,000. Under the special assignee relief programme, the executive will have 30% of their salary above €75,000 up to €500,000 — a maximum of €425,000 — exempted from income tax.

http://www.irishexaminer.com/ireland/elite-foreign-workers-to-save-on-tax-183183.html

 

Measures to boost Ireland's position on the international trading stage - Irish Times

ONE OF life’s visionaries, the late Steve Jobs, once said: “Everyone here has the sense that right now is one of those moments when we are influencing the future.” For those of us with a glass half full perspective, yesterday’s Finance Bill was one of those moments. Recent data from the Department of Finance have shown that tax revenues in January 2012 amounted to €3.67 billion which represents just over 10 per cent of the annual Budget 2012 target. Approximately €250 million in corporation tax receipts, originally due for payment in December 2011, were not received into the Exchequer account until January but it is still a move in the right direction. Adding to all this was a pro-business Finance Bill because business creates “busyness” and that’s what is required right now.

http://www.irishtimes.com/newspaper/finance/2012/0209/1224311519300.html

 

Tax incentives target 10,000 jobs - Irish Examiner

Specific taxation incentives to aid in the creation of 10,000 jobs in the international financial services sector are included in the bill. Ernst & Young financial services tax partner Donal O’Sullivan said there were a range of positive measures included for the international investment funds industry in Ireland. "New provisions strengthen Ireland as a location for fund management companies and funds and enhance the ability of fund managers to make their products more cost effective

http://www.irishexaminer.ie/ireland/tax-incentives-target-10000-jobs-183164.html

 

Interest relief change set to benefit 270,000 homeowners - Irish Examiner

At least 270,000 homeowners are set to see their mortgage interest payments fall. Finance Minister Michael Noonan suggested that prices in the property market could be bottoming out as he unveiled incentives for first-time buyers. First-time buyers who bought during the boom and those who buy homes this year will benefit. Mortgage interest relief will be raised to 30% for first-time buyers who purchased between 2004 and 2008. This is expected to benefit 270,000 purchasers.

http://www.irishexaminer.com/ireland/interest-relief-change-set-to-benefit-270000-homeowners-183157.html

 

Revenue computers need time to apply 30% mortgage interest relief - Irish Examiner

The Finance Minister Michael Noonan is promising that a problem at the Revenue Commissioners in applying beefed-up mortgage interest relief for those who bought at the height of the boom will be sorted soon. It emerged at the publication of the Finance Bill today that computer systems at Revenue are only allowing a rate of 25%t to be allowed and not the 30% relief announced on Budget day. But Mr Noonan said it will be resolved soon and those who bought between 2004 and 2008 will get the relief at 30% back-dated.
 

http://www.irishexaminer.com/breakingnews/ireland/revenue-computers-need-time-to-apply-30-mortgage-interest-relief-539083.html

 

New revenue powers on online trade - Irish Times

TAX EVASION: MEASURES AIMED at a growing trend in under-reporting credit card transactions are among a number of new powers for the Revenue Commissioners contained in the Finance Bill. Evidence is emerging that some businesses may be under-reporting card payment transactions, with the evasion taking the form of non-reporting of the online business income, according to the Department of Finance. The problem is of relatively recent origin but is recognised as significant and may be regarded as a modern equivalent of cash “under the counter” payments, the department said

http://www.irishtimes.com/newspaper/finance/2012/0209/1224311519320.html

 

High Earners to keep more of their pensions - Irish Examiner

High earners will be able to keep more of their multimillion-euro pensions after the finance bill rowed back on some of the extra tax liabilities introduced last year. Budget 2011 more than halved the standard fund threshold (SFT) — the value a pension fund can reach before it becomes taxable — from €5.4m to €2.3m. However, top-paid workers are to be given a one-off chance to cash in all or part of their pension fund to keep it below the SFT without incurring stiff tax penalties

http://www.examiner.ie/ireland/high-earners-to-keep-more-of-their-pensions-183161.html

 

Stamp duty on farm land falls to 2% - Irish Examiner

A reduction in stamp duty on agricultural land from 6% to 2% should help stimulate the market for farming land, Minister for Agriculture and Food Simon Coveney said. The Finance Bill provides for the rate of just 1% stamp duty on transfers to close relatives until the end of 2014. "This change will substantially reduce the stamp duty payable on transfers of farm land by gift or by sale," said Mr Coveney

http://www.examiner.ie/ireland/stamp-duty-on-farm-land-falls-to-2-183163.html

10.02.2012. 14:47