11.2.99

Finance Bill 1999

The Minister for Finance, Mr Charlie McCreevy, TD, published the Finance Bill 1999 today, Thursday 11 February, 1999. The Minister pointed out that the Bill gives effect to the tax measures which he announced on Budget Day and also to the tax changes he announced on 21 January in the preliminary list of Finance Bill measures.

The Minister drew attention to a number of further major proposals in the Bill which have been agreed by the Government and which are being announced today. These measures include the following:

• Significant new powers for the Revenue Commissioners, including greater access to information held in financial institutions, enhanced third party information requirements, new requirements on taxpayers to provide information to Revenue, and the closure of certain tax loopholes in regard to offshore trusts and companies.

• New arrangements for the taxation of companies incorporated in the State to combat the problem of Irish-Registered Non-Resident Companies. There will also be measures in the Companies Amendment Bill to be published shortly by the Minister for Science, Technology and Commerce, Mr. Noel Treacy TD.

• New arrangements for pensions provision to allow for a greater choice and flexibility in this area. These apply mainly to the self-employed. The detailed legislation on the new pension rules are not in the Bill as published, but will be included at Committee stage.

• New tax incentives for owner-occupied housing in the Rural Renewal tax designated area to promote the attractiveness of the area concerned for residential purposes.

• The rollover of existing tax relief for investment in film making until 5 April 2000 pending full consideration of special studies on Film Relief to be published by the Minister for Arts, Heritage, Gaeltacht and the Islands.

• Extension of capital allowances for certain projects in the Custom House Docks Areato end 1999, as recently approved by the EU Commission.

• Tax changes to allow a special Government bond exchange programme to be undertaken by the NTMA to improve liquidity in the bond market.

The full details of all the Finance Bill proposals are set out in the Summary of Finance Bill Measures published today. In particular, Appendix A to the Summary lists the new Revenue powers proposed in the Bill, Appendix B sets out the package of measures to tackle IRNRs, and Appendix C sets out the proposed new pension rules in detail.

The Minister said that the 1999 Bill was one of the largest Finance Bills published in recent years. "It implements the £600m Budget tax package aimed at the lower paid; gives effect to the major fundamental change in personal taxation in this year's Budget - the move towards a full Tax Credits System; introduces significant new reliefs to help various categories of taxpayers; provides new reliefs to promote economic and rural development; equips Revenue with extra powers to combat tax evasion; and sets out the first major and substantial overhaul of pension tax rules in thirty years to provide individuals with a genuine choice and a greater say in their own pension arrangements." The Minister said that the Bill would begin its passage in the Dáil next week and, by law, had to be signed by the President by 2 April, 1999.

11.2.99 - Finance Bill 1999 - text of Bill

11.2.99 - Finance Bill 1999 - Explanatory Memorandum