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Cowen kept tax loophole open for developers


ellie08

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Not only is the tax payer being asked to pay for the mess caused by the greedy developers, but looking at this article back in May 2008, they avoided paying tax on their huge profits when the going was good. Joan Burton brought it up in the Dail (2008), but was informed that the loophole was not going to be closed. While billions could have been raked in in tax revenue, our glorious leader decided against it. Should he be questioned about this decision again?

Cowen will keep tax loophole for the super-rich
Taoiseach-in-waiting stands by while wealthy developers avoid massive sums in stamp duty

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Please cite source and quote less than 10%
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Sunday Business Post - June 2007
If Cowen signs the commencement order, the legislation would close off certain lawful stamp duty planning techniques, such as resting on contract and building licences, which have been widely used by developers when structuring commercial and residential property deals.

According to government sources, the minister is wary of introducing any measure that would have a destabilising effect on the property market.
 
Last edited:


Libero

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The Minister took the best possible advice available: http://www.goodbody.ie/aboutgoodbody/reports/Study of the Potential Effect of Commencing the Section 110 Provisions of the Finance Act 2007.pdf

OK, so it was provided by a consultancy whose parent, Goodbody Stockbonkers, was owned at the time by a bank - AIB - that was busy funding the developers who benefitted from the loophole.

And it was possibly the only economic consultants' report in the history of EU finance ministries to contain one graph and next to no proper economic analysis.

But it was good enough for Cowen.
 

spotty

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All this digging up the past is pointless. We are where we are. Forward together. In the national interest. Going forward. Not back.

Ah, Spotty misses his FF days.
 

Barnacle

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Yeah, just like the other stamp duty loophole of purchasing land under licence thus avoiding Stamp Duty. Legislation was drafted a number of years ago to close this off but also has never been enacted.
 

Cael

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Wouldnt you be surprised...
 

flavirostris

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tonic & others were spinning the line that Cowen had made every effort to close off these loopholes as well as cooling down the tax incentives that were fuelling the bubble.

Cowen is basically a traitor. He constantly put the interests of powerful supporters ahead of the interests of the state
 

commonman

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All this digging up the past is pointless. We are where we are. Forward together. In the national interest. Going forward. Not back.

Ah, Spotty misses his FF days.
we are where we are,but where are we going::(
 

olamp

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Unless I get a refund of the stamp duty which I paid in 2004 I will not be paying a property tax.
 

tommyd

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tonic & others were spinning the line that Cowen had made every effort to close off these loopholes as well as cooling down the tax incentives that were fuelling the bubble.

Cowen is basically a traitor. He constantly put the interests of powerful supporters ahead of the interests of the state
+1 i fully believe your right about cowen.
 

DCon

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Cowen is basically a traitor. He constantly put the interests of powerful supporters ahead of the interests of the state
Careful now. You will have Cowen saying that is "beyond the pale".

When Gilmore accused him of economic treason, Cowen looked offended and said it was "beyond the pale". Gilmore looked like he was going to cry..

The boys club do not like offending each other
 

eoghanacht

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Thats why Democracy is now defunct.

Political parties operate purely in the interests of their benefactors.

Direct Democracy now
 

'orebel

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Careful now. You will have Cowen saying that is "beyond the pale".

When Gilmore accused him of economic treason, Cowen looked offended and said it was "beyond the pale". Gilmore looked like he was going to cry..

The boys club do not like offending each other
Don't know why Gilmore bothered with the economic bit.
 

flavirostris

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Careful now. You will have Cowen saying that is "beyond the pale".

When Gilmore accused him of economic treason, Cowen looked offended and said it was "beyond the pale". Gilmore looked like he was going to cry..

The boys club do not like offending each other
The reason for his bemused hurt is that tribal Fianna Fail supporters really think that the party is incapable of treason. FF is Ireland so how could FF be traitors.
Cowen's guiding principle has been that the interests of Fianna Fail and the interests of Ireland are one and the same.
By putting the interests of the FF tribe first, he was doing the right thing by Ireland.

He probably still dosen't understand that they are not the same thing.
 

ellie08

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Stamp duty loophole to be investigated
Updated: Thursday, 23 March 2006

The Revenue Commissioners will investigate a loophole in the tax laws that can allow developers to avoid paying stamp duty on land they purchase.

Article Video (2)

Brian Cowen
Examining loophole
Play

Nine News: Watch the report
Play

Six One News: David Murphy, Business Correspondent, reports on the revelation that a tax loophole allowed developers to avoid paying stamp duty
Related Stories

Controversy over stamp duty charges
The Revenue Commissioners will investigate a loophole in the tax laws that can allow developers to avoid paying stamp duty on land they purchase.
Normally, if a developer buys a piece of land they pay a 9% stamp duty, but the loophole allows them to avoid paying the stamp duty if the land is leased instead of purchased.
The Minister for Finance, Brian Cowen, has confirmed that the matter will be examined.
Stamp duty is expected to bring in €2.7 billion this year, most of which comes from property sales.


Well Revenue Commissioners, what did you find in your investigation?
 

ellie08

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Joan Burton highlighted in 2006 also. See below:
Should this man be allowed to be our Taoiseach?




TCH Archives > Sunday Business Post > 2007/06/24 > Cowen fails to tackle stamp duty loophole

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Cowen fails to tackle stamp duty loophole
Sunday, June 24, 2007 - By Ian Kehoe
Minister for Finance Brian Cowen will this week come under pressure in the Dail to explain why he has failed to close a stamp duty loophole benefiting property developers.

Cowen introduced legislation in February’s Finance Bill closing off a number of major loopholes used by developers to write millions of euro off their stamp duty bill.

However, The Sunday Business Post has established that the minister has still not signed a commencement order, bringing the new legislation into effect.

Senior Fine Gael and Labour figures will press Cowen about his delay in implementing the anti-avoidance legislation when the Dail meets next week to debate government proposals to abolish stamp duty for first-time buyers.

If Cowen signs the commencement order, the legislation would close off certain lawful stamp duty planning techniques, such as resting on contract and building licences, which have been widely used by developers when structuring commercial and residential property deals.

According to government sources, the minister is wary of introducing any measure that would have a destabilising effect on the property market.

Furthermore, Cowen believes that most developers have stopped using the loophole since he proposed the legislation, sources said.

Under a late amendment to the Finance Bill, Cowen introduced new rules that, if enacted,[did this happen?] would require stamp duty to be paid in any contract where landowners received a licence worth more than 25 per cent of the land’s value.

At the time, Cowen admitted that the Revenue Commissioners believed the use of the tax loophole had become ‘‘common practice’’ in 2006, and that it had cost the exchequer €40 million in lost taxes last year.

Labour’s Joan Burton highlighted the loophole last year in the Dail when she said that the consortium buying the Irish Glass Bottle plant in Dublin saved €32 million in stamp duty on the €412 million deal by buying the company that owned the site, rather than the property itself.This meant they paid only 1 per cent stamp duty instead of 9 per cent.

The cabinet last week agreed on new proposals to abolish stamp duty for first time buyers. The back-dated changes will remove thousands of house hunters from the property tax net.
 

Barnacle

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Joined
Sep 15, 2009
Messages
854
Stamp duty loophole to be investigated
Updated: Thursday, 23 March 2006

The Revenue Commissioners will investigate a loophole in the tax laws that can allow developers to avoid paying stamp duty on land they purchase.

Article Video (2)

Brian Cowen
Examining loophole
Play

Nine News: Watch the report
Play

Six One News: David Murphy, Business Correspondent, reports on the revelation that a tax loophole allowed developers to avoid paying stamp duty
Related Stories

Controversy over stamp duty charges
The Revenue Commissioners will investigate a loophole in the tax laws that can allow developers to avoid paying stamp duty on land they purchase.
Normally, if a developer buys a piece of land they pay a 9% stamp duty, but the loophole allows them to avoid paying the stamp duty if the land is leased instead of purchased.
The Minister for Finance, Brian Cowen, has confirmed that the matter will be examined.
Stamp duty is expected to bring in €2.7 billion this year, most of which comes from property sales.


Well Revenue Commissioners, what did you find in your investigation?
They closed it off in legislation in 2007 but never enacted it, so loophole still open.
 

ellie08

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Nov 2, 2008
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Does anyone know the outcome of the RC's investigation or is it ongoing? Billions of lost revenue and the govt allowed it? Why? These people were making millions/billions in profits. Whoever votes for these people need to have their heads tested (unless you are developers of course) My God, during the boom, they put nothing into education, parks, bus services, services for the community.
 

an innocent abroad

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history of the tax dodgers, the banks and their grubby little bag men the politicans will make sure we keep and keep repeating the same history over and over again. Hands up all you who voted F.F. in the last election. I for one have never voted for them but our family will have to carry their ************************ economic decisions for generations.
 

Barnacle

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Joined
Sep 15, 2009
Messages
854
Does anyone know the outcome of the RC's investigation or is it ongoing? Billions of lost revenue and the govt allowed it? Why? These people were making millions/billions in profits. Whoever votes for these people need to have their heads tested (unless you are developers of course) My God, during the boom, they put nothing into education, parks, bus services, services for the community.
They closed it in the FA but never enacted it. Loophole still there, its called buying under licence. Developer buys property from land owner by licence. Basically the land owner gives the builder permission to build on the land but the property is not conveyed. Conveyance only takes place when the house that was built is sold and often these were exempt as new houses.
 

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