There has been positive news on the tax front since the conference as Minister moves to offset Revenue decision on CFDs – The St Patrick’s Day decision to change the tax treatment of CFDs on equities retrospectively, which has potentially a major impact on the Irish market, and on Irish equities has been put on hold by the Minister for Finance. In a statement issued on March 30th* (see below), the Minister indicated that the move will be repealed.
Full text of Department of Finance statement issued on March 30th: “Cowen to review Stamp Duty on Share Transactions: Contracts for Difference “The Minister for Finance, Mr Brian Cowen, TD, today indicated that, in view of uncertainties and difficulties of which he had become aware, he plans to review the law as it relates to stamp duty on share transactions which underlie trading in Contracts for Difference based on Irish equities. The Minister said that he was anxious that the market in Irish equities would continue to be a modern, liquid market, conducive to capital acquisition by Irish firms. His Department would consult with the Revenue Commissioners and with market participants with a view to appropriate announcements being made in Budget 2007”. Note: A Contract for Difference is an instrument issued by a financial institution entitling the purchaser to take gains or losses arising from movements in the market price of, for example, a share or index.