The Department of Finance has said that it plans to fulfil one aspect of a Government commitment to tackle aggressive tax planning through legislation.

After a public consultation, the department has published a feedback statement setting out its approach to preventing double non-taxation on outbound payments to certain jurisdictions.

It said that it planned to address the issue through legislation in Finance (No.2) Bill 2023.

The proposed new measures would apply only to transactions between entities that are associated through one having “definite influence” in the decision-making activities of another, or where another entity has “definite influence” in the decision-making activities of both entities.

Existing provisions

The moves would apply to outbound payments to jurisdictions on the EU list of non-co-operative jurisdictions, no-tax, and zero-tax jurisdictions.

The department plans to use existing withholding-tax legislative provisions in relation to interest, royalties and dividends “with certain modifications”.

It is inviting submissions on the feedback statement by Tuesday 8 August. The email address for submissions is intltax@finance.gov.ie.