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

jpd said:
So Revenue would lose the benefit of the taxes paid at 41% - I can't see that going down well with them
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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.
 
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AJAM said:
I've shown a few times on AAM that the extra revenue the 41% brings in, is minimal,
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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
 
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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.
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Hi Gerard, do you know if Revenue do not publish the figure or they are not aware of the amount?
 
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
 
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.
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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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They know the total for that line, 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, with ETFs having an address in Ireland.
 

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Really makes you think how well are they ensuring tax compliance on deemed disposal/exit tax if they do not know how much they are collecting.
 
They know how much they collect but not how much they should be collecting
 
jpd said:
Of course they would be aware of the gains declared by taxpayers on Form 11
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jpd said:
Probably no one ever asked for them
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jpd said:
They know how much they collect
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Only way to find out if they know exactly how much they collect each year on self-assessed ETFs is to contact them and ask.

The point of contact for the information disclosed here is statistics@revenue.ie (And no, it's not included in the Life Assurance Exit Tax figure).
 
How could they possibly know ?

If investors don't tell them about their purchases and disposals, deemed or otherwise, there is no way that they can discover this information in a timely manner
 
I notice that Etrade were taken over by Morgan Stanley a year ago ,I notice that they put ETFs and closed end funds in a different category to stocks in single companies, they never had this distinction before. I wonder have they just done this for european accounts in Etrade given that you can no longer buy US domiciled ETFs as a european since 2020 due to changes in regulations?
 
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