| An anti avoidance provision, section 806, which was originally aimed at preventing tax avoidance arising from the diversion of income by resident individuals to foreign entities, has become an obstacle to foreign investment in a way not originally envisaged. It is poorly aligned with EU law and with other Irish tax measures impacting cross border investment.These measures ignore the need for major investment projects to retain earnings to be viable in the long term. Section 806 together with the general anti avoidance provision, section 811, it is part of a tendency to permit taxation by Revenue discretion , rather than by clear legal provisions. |
