The Minister for Finance, Mr Charlie McCreevy, T.D., is to introduce two amendments to the 2004 Finance Bill. The move is intended to close off loopholes in the stamp duty and income tax areas.
The stamp duty amendment relates to an exemption from stamp duty in the case of certain company reconstructions and amalgamations.
A number of cases recently came to the of the Revenue Commissioners involving the use of certain contrived arrangements based on this loophole which sought to avoid or reduce the stamp duty on transfers of real property and shares.
These changes will take effect in respect of legal documents executed on or after 20 February 2004.
The second amendment relates to interest tax relief where loans applied for the purposes of acquiring buildings that qualify for capital allowances.
This change will take effect in respect of interest paid on or after 20 February 2004 where the shares concerned were acquired on or after that date.
The full details of these amendments are being published in connection with the Committee Stage of the 2004 Finance Bill, which will commence on 24 February next.