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

[Hmm5673]

So Revenue would lose the benefit of the taxes paid at 41% - I can't see that going down well with them

Dunno why Revenue should care; it’s their job to collect what they’re told to collect. It’s not like they get to keep it.

 

[AJAM]

So Revenue would lose the benefit of the taxes paid at 41% - I can't see that going down well with them

I've shown a few times on AAM that the extra revenue the 41% brings in, is minimal, and that the foregone gains for the punter are >20x the extra tax. This is borne out by revenues own figures which show CGT taxes have grown massively since the introduction of Exit tax, while Exit tax has comparatively shrunk.
I would bet that Revenue hate Exit tax for the same reason we do, deemed disposal makes it extremely complicated to figure out who owes what when. And the unclear and changing guidance on what qualifies for Exit vs CGT leaves them exposed to court appeals. Revenue want an easy, clear, straightforward tax system, even more than we do.

 

[GSheehy]

I've shown a few times on AAM that the extra revenue the 41% brings in, is minimal,

To te best of my knowledge there is no total figure available from Revenue for exit tax i.e. the one that includes exit tax on self-assessed ETFs. What Revenue publish under their receipts by taxhead is Life Assurance Exit Tax only.

Gerard

www.bond.ie

 

[Wolframius]

To te best of my knowledge there is no total figure available from Revenue for exit tax i.e. the one that includes exit tax on self-assessed ETFs. What Revenue publish under their receipts by taxhead is Life Assurance Exit Tax only.

Hi Gerard, do you know if Revenue do not publish the figure or they are not aware of the amount?

 

[jpd]

Of course they would be aware of the gains declared by taxpayers on Form 11 and of the amounts deducted by life and investment companies.

So yes, they have a breakdown of the taxes declared and paid

Whether everyone who is liable to declare a deemed disposal actually does so is another unknown

 

[Wolframius]

So yes, they have a breakdown of the taxes declared and paid

So why do they not publicly disclose the figures?

 

[jpd]

Probably no one ever asked for them

 

[Corola]

The report says they don't know the figure.

Furthermore, these receipts do not include tax paid through self-assessed returns (i.e. in respect of Irish domiciled ETFs; investments in EU/EEA/OECD equivalent offshore funds; and foreign life policies) as this data is not available.

 

[GSheehy]

10th May 2024

From another thread on here

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I asked for the figure last year.

In July they said it was included in the LAET figure

In September (after much probing and prodding) they told me that it wasn't.

They couldn't provide an actual figure, citing:

The declaration of dividends/gains from ETFs, and the associated tax take, cannot be separately identified from these returns, since the relevant fields include dividends/gains from sources other than ETFs.

That's the only evidence I have that they don't know what the actual figure is.

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[Corola]

They know the total for that line though, it's either:

• Irish-domiciled ETFs
• EU/EEA/OECD equivalent offshore funds

They could estimate the proportions in each from the details given when you acquire a fund. They can distinguish ETFs by having an address in Ireland.