408. Deputy Denise Mitchell asked the Tánaiste and Minister for Finance if he plans for the establishment of a working group to review and propose changes to the taxation of funds, life assurance policies and other investment products, as recommended by the Welfare and Taxation Commission; and if he will make a statement on the matter. [65014/26]

‘Foundations for the Future’, the report by the Commission on Taxation and Welfare was published in September 2022. It is a comprehensive document featuring 116 recommendations aimed at shaping the future of Ireland’s taxation and welfare systems.

In October 2024, the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ (Funds Review), was published. The Funds Review is a wide-ranging review of the funds and asset management sector and fulfils recommendation 6.6 of the Commission on Taxation and Welfare 2022 report, which called for an examination of the taxation regime for funds and life assurance policies, with the goal of simplification and harmonisation, where possible.

The Funds Review identified forty-two recommendations to continue to grow this important sector of our economy. Of particular relevance were the recommendations on encouraging retail investment, which included recommendations in relation to the tax treatment of retail investment.

Budget 2026 introduced a reduction in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, from 41% to 38%. Budget 2026 also included a commitment to publish a roadmap for the taxation of retail investment. A key aspect of this roadmap, published 31 August 2026, is the inclusion of key parameters of the proposed new investment account. The intention is to legislate for the account in 2026 and to allow accounts to be offered in 2027.

The roadmap also includes a section setting out areas for further review and identifies three key policy levers for examination.

These levers have the potential to simplify the current taxation regime, while maintaining a well-functioning regime for investment funds and life assurance products, which can continue to contribute to Ireland’s success in the financial services sector.

The levers are:

• Reduce the rate of taxation

• Review the deemed disposal rule

• Introduce administrative simplification.

These levers will be considered as part of the reform of the existing regime for the taxation of retail investments and are separate to the introduction of the investment account in Budget 2027.

As outlined in the roadmap, measures of this nature are considered as part of the annual budgetary process and, in line with usual budget process, there will be no commentary on individual budget decisions or prejudging of future decisions ahead of October. Any decision has to consider the budget ceilings agreed by Government, and the range of options across the entire tax system.