Is the 41% Exit Tax Soon to be Scrapped? Michael McGrath to Review

I wonder are they worried about a run on bank deposits?

I can’t think of any technical reason why these changes couldn’t be introduced in a single finance bill.
 
Sarenco said:
I wonder are they worried about a run on bank deposits?

I can’t think of any technical reason why these changes couldn’t be introduced in a single finance bill.
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Probably political. Didn't want to run the rock of being perceived to be giving a freebie to 'rich' investors.
 
AJAM said:
Rich investors don't pay 41% exit tax!
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We all know that, but do politicians know that, and do they believe the electorate know that?

And do the politicians believe that those who supply the electorate with their opinions believe that (or even if they know that might tell the electorate that its a fat cats' windfall from the government).

Sounds easier to leave it for a non election year.
 
Like the SFT they are best slipping it in to next year's finance bill after the budget. Government likes to keep the peace by making a big deal about what the non-working class are getting but saying not much out loud about what the rich are getting.
 
Sarenco said:
I wonder are they worried about a run on bank deposits?
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I doubt it. Unless the banks are in their ear that they'd prefer to stay cannibalizing their own deposit base via shareholder delight expensive investment products via Irish life and New Ireland and not encourage anyone else to think about doing that.

If folk won't move their money to the higher yielding non-Irish deposit accounts in other jurisdictions and prefer to let the Irish Banks collect higher margins on their money here, I'd not expect those same people to invest away from deposits en masse.

The tax is still wagging the investment dog even though we'd expect that the 41% rate will reduce and deemed disposal will be gone in the 8 year cycle of the next two Governments. I don't see an immediate influx to unit-linked funds, even with that knowledge. Maybe folk are just procrastinating and waiting to see it in black and white.
 
Just watched a YouTube video from a US investor talking about the advantages for us investors to invest in Irish domiciled ETFs rather than US domiciled ETFs. The us investor is charged 30% dividend witholding tax investing in the US domiciled ETF but the exact same ETF domiciled in Ireland he is only charged 15% due to a treaty between Ireland and the US
Is it any wonder there is so much money over 1 trillion dollars invested in Irish domiciled ETFs and again points to Ireland being a tax haven except if you are Irish of course, then they have the most Draconian investment tax regime in the western world. I think this angle needs to be hammered home in order to force government to lift this deemed disposal tax immediately
 
Looks like all the government talk of discontinuing with deemed disposal and 41% tax started with EU instruction to make investing more accessible.

It’s probably just as well the EU want this, as presumably government are expected to see it through (assuming FG/FF return after the GE). Otherwise it might never happen.

How can Europe tap into trillions worth of hidden funds?

When EU officials travelled to Washington recently, the US Federal Reserve Chair Jerome Powell showed them a chart showing American productivity over a 40-year period compared to European productivity.
www.rte.ie
 
So looks like pascal Donohue has been talking out of both sides of his mouth. At European level he wants a single rules based system for every country to make it easy for companies to access capital from stock markets like in us, on the other side of his mouth he has been defending the unique deemed disposal regime in Ireland which is contrary to everything in that article about European capital markets.
In the light of European moves to make investing in European capital much more streamlined I'm beginning to think that revenue removing their clarification about us domiciled ETFs being taxed differently and more beneficialy than European (irish domiciled) for Irish investors was an embarrassment for the government and that was the real reason this clarification was removed without really changing anything. The 1 trillion invested in Irish domiciled ETFs which consist largely of us companies by us financial funds is the Achilles heel for the government and this needs to be hammered home
 
Pascal always struck me as someone the civil service would describe as 'a pleasure to work with'.
 
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