The Minister for Finance in his opening speech on the second stage debate on the Finance Bill remarked that the Bill “should be viewed as one element of a wider strategy to support economic activity” and the measures are “designed to support investment, stimulate research and, ultimately, create jobs”.

The Bill moved to Committee Stage at the end of February and among the key amendments proposed by the Minister for Finance is:

• Foreign Earnings Deduction – proposal to provide that a “qualifying day” is one of at least 4 consecutive days, throughout the whole of which the individual is working in a BRICS country. The Bill, as initiated, required at least 10 consecutive days working abroad.
• Special Assignee Relief programme (SARP)-In the written submission to the Minister for Finance on Finance Bill 2012, CCAB-I, recommended that “measures are needed to ensure that the pre 2012 SARP is grandfathered for those already availing of this relief”. In addition, the 30 day restriction on time spent outside Ireland makes the relief all but unusable for those in senior roles. The proposed amendments provide for a tapering termination of the old SARP regime along with the abolition of the 30 day restriction on incidental work performed outside Ireland.
• R&D Credit – A new measure to ensure that where an employee is no longer a “key employee” in the tax year following the tax year during which the company surrendered the relief, but is still an employee of the company in that subsequent year, the employee will still be in a position to avail of the surrendered relief.
• CGT Retirement Relief – Amendments to confirm that individuals aged 66 or over will qualify for relief under the pre Finance Bill 2012 regime until 31 December 2013. Disposals made by such individuals after that date will be subject to the new restrictive measures introduced in Finance Bill 2012.
• CGT Property relief – A number of amendments to section 64 of the Bill as initiated are proposed and these include: confirmation that the relief applies to land or buildings situated in the State; requirement that property must be acquired for market value or in the case where acquired from a relative for at least 75% of the market value, and any income/profit derived from the property during the seven year holding period is subject to either the Income Tax Acts or Corporation Tax Acts.
• CGT exemption for sporting bodies – introduction of an exemption from tax for chargeable gains which accrue to an approved sports body in certain circumstances.
• Section 811 TCA 1997 – Amendments to provide that the time limits on the making or amendment of an assessment or on the requirement to pay tax will not apply and will not affect the collection and recovery of tax which is due and payable. These provisions are proposed to apply to assessments made on or after 28 February 2012.

At the time of writing, the Bill is expected to move to Report Stage in the Dáil on 13 and 14 March and thereafter to the Seanad.