The 2010 Finance Bill is unveiled

The 2010 Finance Bill has been published earlier this afternoon.  In addition to the measures announced in the Budget, it contains a raft of new provisions, including the following:

  • A new package of reforms to the Capital Acquisitions Tax system,  which are designed “to modernise and simplify the CAT regime, while delivering immediate and significant benefits to taxpayers, their legal advisers and the Revenue Commissioners”.
  • Minister for Finance, Brian Lenihan

  • Measures to facilitate the development in Ireland  of Islamic finance which  is compliant with the principles of Shari’a law.
  • From 1 July 2010, VAT will apply to Public Bodies and local authorities, for waste collection, landfill, and recycling services; off-street parking; toll roads; and leisure facilities).  This follows a 2009 European Court of Justice (ECJ) ruling against Ireland. The changes will not affect education, health, water and passenger transport services.
  • The abolition of  certain Tax Reliefs including tax relief on Service/Refuse charges (from 2012 onwards), relief for Gifts of property to the State and Capital Allowances for childcare facilities.
  • Confirmation that the 80% Windfall Tax will now not apply to the sale of one-off sites below an acre and €250,000.
  • Technical changes to procedures in relation to tax relief for medical expenses. According to the Dept of Finance “he relief is being refocused on expenses incurred by or on the advice of a medical practitioner”.
  • The scrapping of the 1% Levy on pension products “in order not to discourage investment in pensions”.
  • The introduction of transfer pricing legislation to regulate trading between associated companies.
  • Measures to combat the misuse of tax avoidance schemes.

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