CORPORATE:A NUMBER of business taxation measures included in the draft Finance Bill may deliver a further €60 million in revenue, according to the Department of Finance.
A spokesman said the anti-avoidance measures would compensate for the decision to defer the abolition of certain property reliefs. Their abolition had been projected to bring in €60 million this year.
The amount each of the new business taxation measures might raise was not available and a spokesman pointed out that the amounts associated with all such measures were broad estimates.
Changes are to be introduced so that relief will not be allowed for interest on intra-group borrowings used to finance the purchase of assets from another group company. The interest will not be allowed as a deduction in computing profits or gains of a trade.
However, an exception is to be made where the expenditure results in income generation that had not previously been taxed.Changes are also to be introduced to stop people extracting funds tax free from “close companies” using trusts and other arrangements.
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