ONCE again we have a Finance Bill of significant technical complexity, running to some 144 pages. More than half of the proposals have already been pre announced, so this survey will skim over the newly announced provisions affecting businesses.

What the official commentaries - describe as anti avoidance provisions were not published earlier and a number of these may have quite a significant impact. The capital gains tax code contains what is commonly known as a "paper for paper" relief, under which shares in one company can be sold in exchange for shares or loan notes in another. If the loan notes are constituted as a simple "debt", and not as a "debt on a security", their ultimate disposal would not create a capital gains tax liability.

It is understood this opportunity has been availed of in recent high profile cases. The Bill changes this and will make the disposal of all loan notes subject to tax.

Patent exemption provisions have attracted quite a lot of attention in recent years, and, in particular, since other tax free sources of income have been run down. The availability of the patent relief was curtailed some years back, but the current Bill proposes further restrictions.

Among others, the amount of tax exempt patent royalty distributions which a company can make on or after March 28th, 1996, in any accounting period to individual shareholders will be related to the amount of the R&D expenditure incurred by the company in that accounting period and the two preceding periods. This restriction will not be imposed where the Revenue Commissioners have been satisfied that the patent concerned is in respect of a radical innovation and has not been taken out for tax avoidance purposes.

When a company leaves a tax group of companies, normally capital gains tax would be payable on assets previously transferred to it intra group. This charge could be avoided in certain circumstances if the company and its associate left the group at the same time. Provisions have been introduced to limit avoidance in this area.

To find more positive news, it is necessary to turn to a number of provisions which will be of particular interest to IFSC companies.

Many of these prepare their accounts in their foreign operating currencies, but must pay tax in Irish pounds. Exchange gains and losses arising on tax payments are "tax nothings" under general principles. However, many companies chose to hedge their tax exposures. Heretofore, an argument could be made that gains and/or losses are subject to capital gains tax.

The Bill proposes to exclude gains or losses on hedge contracts from the scope of capital gains tax and it does not bring them within the scope of corporation tax so they, like the underlying tax payments, will also become "tax nothings". This is a useful clarification which will remove a long standing source of uncertainty for many IFSC operators.

Securitisation is a process whereby financial institutions convert their assets, including loans, leases and trade or consumer receivables, for instance, into ready cash. It is a widely used financing technique in many jurisdictions. Heretofore, the Irish tax code created obstacles in the way of securitisation of assets other than mortgages on residential properties. The Bill proposes to extend the range of assets which may be securitised by an IFSC company.

Undoubtedly this will boost business.

Finally, the Bill includes several of what are described as "pre consolidation amendments". This is a reference to the consolidation of the Taxes Act which is stated to be well advanced and due to be completed next year. One, in particular, will have a wide application. The first is the abolition of the writing down basis of allowing wear and tear on plant and machinery acquired pre March 1992 and substituting a straight line 15 per cent rate over years one to six with the final 10 per cent being allowed in year seven.