Part 1 of the Bill gives effect to income tax, stamp duty, excise and VAT changes announced last December in Budget 2005. Part 2 of the Bill contains taxation measures not announced in Budget 2005.
Income tax:
Payments to foster parents will be exempt for income tax.
Commuter ferry services travel passes provided by employers exempt from BIK.
Cash payments from Employee Share Ownership Trusts (ESOTs) will be treated as dividends for tax purposes.
Revenue measures:
Revenue will be able to "sample" data on single premium life policies held by financial services groups.
The definition of "aiding and abetting" for the purposes of tax evasion to be widened.
A company officer will now commit a tax evasion offence where they are neglectful.
Threshold for publication of tax defaulters' names to be raised from €12,500 to €30,000 for tax evaded after 2004.
Daily interest rate applying to defaulters of some taxes to fall from 11.75 to 10 per cent.
Maximum penalty for underpaid taxes to fall from 200 to 100 per cent of tax foregone.
Creation of offence of failing to collect or remit relevant contracts tax.
PAYE system to be changed to allow for e-filing and self-service options.
Anti-avoidance:
Deferral of exit tax on life policies to be prohibited.
Foreign limited partnerships to get same tax treatment as Irish limited partnerships.
Property conveyances can not be split to facilitate lower stamp duty liability.
Foreign-owned money transfer companies operating in Republic to be treated as Irish firms for VAT purposes.
Pensions:
Contributions to schemes in other EU countries will be eligible for Irish tax relief.
Capital allowances:
Registered guesthouses and holiday hostels qualify for capital allowances for tourist accommodation.
Business Expansion Scheme amended to comply with EU conditions.
Condition that 75 per cent of a film must be made in Ireland to avail of Film Relief is lifted.
Individuals who avail of significant buildings and gardens relief must advertise when the property is open to the public.
Corporation tax:
Issues relating to the introduction of International Financial Reporting Standards clarified.
Interest paid to banks in other EU states allowable as business expense.
Financial services:
Threshold for availing of Holding Companies legislation removed.
Interest from deposits held in other EU countries will be taxed at standard rate, rather than marginal rate.
Excise measures:
A minimum tax on use of coal to be introduced
Offences relating to illegal production of spirits extended to cover all alcohol.
