4. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if he will provide an update on the proposed savings and investment account; the precise details of the scheme, including its design and proposed taxation treatment; and the timeline for publication of those details and for the production of any required legislation. [48371/26]

Sentiment score: 0.00

I thank the Tánaiste for his reply to both of us. I appreciate what the Tánaiste is saying. He has had 30 meetings, as he said. There are questions to be answered, however. While I agree with and welcome the entire scheme as it is important to get people, especially younger people saving and into that routine, it does need to be thrashed out by the Oireachtas. I suspect we may need legislation on it. The questions I want to put to the Tánaiste, and I think these are the questions on everybody’s lips, are: what exact tax rate and threshold will apply to this scheme and will the deemed disposal rule be scrapped? I think the deemed disposal rule is very unfair double taxation. I do not think we have had enough conversation around this aspect. If there has been a conversation around it, it certainly has not been published in respect of the 30 meetings behind closed doors. I am not being facetious in saying that. We then have to look at the existing investors who have already put their moneys away, and whether tax penalties will apply to them and, if so, what they will be. There is also the question of whether the scheme will be open to investors who have existing accounts to move over to. I ask the Tánaiste to seriously look at what is done in the United Kingdom and how that tax system works very well to get people to open such accounts. I say this because I suspect we may have a problem if we just go with the old system of deemed disposal. It is not going to work and people are going to run away from it.

Sentiment score: 0.09

I thank the Tánaiste for his reply. I appreciate he is going to open consultation with, and have a briefing for, the Opposition. I think there will be a lot of support across the House for that. I again ask the Tánaiste to look at the UK’s individual savings account, ISA, in respect of which a commitment has been given, in the wake of having met the Chancellor of the Exchequer. There is a problem with taxation. At the moment, if a person invests €10,000, for example, and that person is being taxed on it every eight years, then the tax on that investment has already been paid. That is a serious anomaly. If I were a private citizen, I would probably be taking a challenge to the High Court regarding this issue because it does seem to be double or even triple taxation. What we are not taking into account is that the value of investments goes up and down. The other thing we are doing that also needs to be addressed is that if someone is a landlord and has a big mortgage, then they are being taxed on the rent they are receiving. Quite often, those landlords do not receive any of that rent because it is being paid directly to the mortgage lender. We need to close off those doors as well because it is unfair taxation. Very often there are investment plans of 30 years that people have put together because they do not have a pension or a savings fund. I would like a broader conversation about this. I am happy to meet the Minister to give him a couple of ideas. This is not about challenging him; this is about getting the system right and getting people back saving again.

Sentiment score: 0.15