44. Deputy Shay Brennan asked the Tánaiste and Minister for Finance to review the reason Ireland is the only country in the world to apply a deemed disposal rule to retail investment funds. [35513/26]

Individual jurisdictions design their tax systems to meet their specific requirements, and deemed disposal was introduced in Ireland to prevent indefinite roll-up, as an anti-avoidance measure, in response to actual investor behaviour at the time.

I would note that earlier this year the Dutch House of Representatives passed legislation to introduce a flat rate tax of 36% on actual returns from savings and investments, as well as unrealised gains, effective from 1 January 2028.

Work is continuing on the development of the roadmap on the taxation of retail investment announced in Budget 2026, which will be published in the coming months. The roadmap will set out an approach to simplify and adapt the tax framework to further support retail investment, while retaining necessary and important anti-avoidance protections in a proportionate manner. My intention is that further progress can be made to address some of the existing obstacles to greater retail investment.

The work underway on the roadmap includes consideration of the recommendations of the Funds Sector 2030 Report, including the issue of deemed disposal as well as the European Commission’s recommendation for Member States to introduce Savings and Investment Accounts, to encourage more participation in capital markets.

A key aspect of the new approach will be the introduction of an individual investment account, aligned with the European Commission’s recommendation. At the Savings and Investment Forum on 31 March, I announced that I intend to introduce the legislative framework for an individual investment account in 2026. The Government will take account of expert views as the model is designed to ensure that it best fits the Irish economy and the needs of Irish households.