Finance Bill strengthens Ireland for Ucits IV
From Europe Feb 13 2012 BY: Simon Danaher
, Online News Editor
, International Adviser
The Irish fund industry received a boost from a set of provisions in the country’s Finance Bill last week, according to its fund association, which are accommodating to the Ucits IV directive.
The Irish Funds Industry Association said the provisions in the Bill build on a commitment made by the finance minister, Michael Noonan, in his Budget speech in December. In the speech, Noonan said he planned to “introduce a package of measures in the Finance Bill to support the continued success of the international funds industry”.
The IFIA said the Bill includes a number of “very welcome measures” which will enhance Ireland’s attractiveness as a location for regulated investment funds generally and Ucits IV funds specifically.
Included in the Bill are provisions to provide further tax efficiency for the cross-border merger of investment funds and ‘master-feeder’ structures – two significant features of the Ucits IV directive.
In order to extend exemptions available to investment funds, the bill also includes a number of further stamp duty amendments. The IFIA points out that the Bill noted: “The guiding principal in the case of investment funds is that stamp duty should not apply in situations where there is no change in economic ownership of the underlying assets being transferred.”
The IFIA added that the Bill also provides “some welcome clarifications and extensions to the format and requirements for tax reporting by industry companies”.
Ken Owens, chairperson of the IFIA said: “Ireland’s success as a jurisdiction for funds has been built upon our ability to provide the most effective legal, regulatory and tax environment for the domicile and administration of internationally distributed investment funds. The very welcome tax provisions in the Finance Bill and the other legislative measures being developed will continue to ensure the effectiveness of the environment in Ireland for the establishment and servicing of internationally distributed investment funds."