Couple of good articles in the Irish Times regarding tax on investments over the last few days, specifically with regard to the 'Funds Sector 2030: A Framework for Open, Resilient & Developing Markets' review which McGrath commissioned.
The first is a piece by Fiona Reddan on the complexity of the Irish taxation system, which is putting people off investing.
As one of the 140 'Joe Soaps' who made a submission as part of the review, I'm pleased to see someone appears to have listened.
I also thought it was interesting to see BlackRock's submission noting how unattractive ETFs are in Ireland despite their lower fees.
"BlackRock, the world’s largest asset manager, estimates that ETF assets in Europe will reach €2.5 trillion by 2027. However, due to issues with the Irish tax regime, they are not as attractive as they should be – despite being considerably cheaper than other options. You’ll pay just 0.07 per cent to invest in the Vanguard S&P 500 UCITS ETF, for example, but you’ll pay north of 1 per cent a year to invest in a similar fund with an Irish life company."
Proinsias O'Mahony's article yesterday is also good, commenting on the suggestion that investment tax incentives the Govt is considering may be limited to narrow and risky options in early stage companies, noting "...ordinary investors are completely uninterested in funding such businesses. Long-term investors want simple tax reforms to a penal, irrational and needlessly complex system. They want easy access to cheap, diversified funds, instead of feeling forced to buy individual stocks."
The first is a piece by Fiona Reddan on the complexity of the Irish taxation system, which is putting people off investing.
As one of the 140 'Joe Soaps' who made a submission as part of the review, I'm pleased to see someone appears to have listened.
I also thought it was interesting to see BlackRock's submission noting how unattractive ETFs are in Ireland despite their lower fees.
"BlackRock, the world’s largest asset manager, estimates that ETF assets in Europe will reach €2.5 trillion by 2027. However, due to issues with the Irish tax regime, they are not as attractive as they should be – despite being considerably cheaper than other options. You’ll pay just 0.07 per cent to invest in the Vanguard S&P 500 UCITS ETF, for example, but you’ll pay north of 1 per cent a year to invest in a similar fund with an Irish life company."
Proinsias O'Mahony's article yesterday is also good, commenting on the suggestion that investment tax incentives the Govt is considering may be limited to narrow and risky options in early stage companies, noting "...ordinary investors are completely uninterested in funding such businesses. Long-term investors want simple tax reforms to a penal, irrational and needlessly complex system. They want easy access to cheap, diversified funds, instead of feeling forced to buy individual stocks."