How to not pay any tax, all in one simple lesson.

He3

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As the evenings draw in and minds turn to taking up self impovement classes here is something that may pay real dividends. David Clerkin of the Sunday Business Post has a lovely heartwarming story of how property developers can legitimately set off interest they do not pay against otherwise taxable income so that they do not pay any tax at all at all. Here is the key point:

A Revenue spokesman confirmed that it was possible for a borrower to claim an interest deduction even if the loan was not being repaid.

Developers know about this but why should developers have all the fun?

Property developers with Nama-bound loans are enjoying multimillion-euro benefits by exploiting a loophole that allows them to claim tax deductions on interest payments even if they are not making the payments to their banks.

Nama developers exploit loophole to avoid millions in tax | The Post

The Sunday Business Post has established that the Revenue is examining the practice of developers claiming tax deductions on interest charged on their loans.

Officials are believed to be concerned that borrowers who are not making repayments to their banks may still be claiming tax deductions on their interest bills and using them to shelter other income from tax.

Some developers - who also have extensive commercial property investment portfolios that include office blocks or shopping centres - are believed to be retaining significant amounts of rent coming in from tenants.

They are refusing to pass on the money to their banks, using it to fund lifestyle spending instead. By claiming a tax deduction on the interest bill - even if that bill is not being paid - the developers in question can avoid paying tax on this rental income.

A Revenue spokesman confirmed that it was possible for a borrower to claim an interest deduction even if the loan was not being repaid.


That is a helpful spokesman isn't it? Now what are you waiting for? Such entrepreneurial spirit is what the country is told to admire, and imitation is the best form of flattery.
 
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tomybhoy

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How does the ordinary PAYE worker take advantage of this loophole which is only there for the rich??????????
 

He3

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How does the ordinary PAYE worker take advantage of this loophole which is only there for the rich??????????
You learn fast.
 

Barnacle

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Yeah, and on top of this, the loan interest is granted at 100% whereby the little investor who invested in residential, their interest relief is capped at 75%. And some of these commercial building are rented back to the state.
 

tomybhoy

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For a minute I thought I might be able to reduce my tax bill to give my kids all that I have worked for but alas it looks like my money will be going to the crooks and gamblers that got this Country into this position.............I didnt have a second home and we only once had a new car 11 years ago but I am going to pay for the people who gambled on the property market which was ludicrious.........ah shur, at least the politicians that helped screw the Country with their friends will be alright.....every cloud has a silver lining I suppose.
 

He3

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Yeah, and on top of this, the loan interest is granted at 100% whereby the little investor who invested in residential, their interest relief is capped at 75%. And some of these commercial building are rented back to the state.

Odd that.
 

He3

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For a minute I thought I might be able to reduce my tax bill to give my kids all that I have worked for but alas it looks like my money will be going to the crooks and gamblers that got this Country into this position.............I didnt have a second home and we only once had a new car 11 years ago but I am going to pay for the people who gambled on the property market which was ludicrious.........ah shur, at least the politicians that helped screw the Country with their friends will be alright.....every cloud has a silver lining I suppose.

Who gets the cloud and who gets the silver?
 

tomybhoy

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My family have the cloud for the next decade....our great politicians as ever get all the silver to throw about as they deem fit.
 

Samell

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Typical we split a gold mine 50/50. Developers Politicians and Bankers get the Gold and the rest of us get the shaft!
 

an innocent abroad

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Looking at all the threads, it would seem that the majority of people are of the belief that we live in a very corrupt country, and the taxes the state takes from decent taxpayers is used to subsiside the wealthy. So why are the streets empty? are we so downtrodden that we are all suffering from BATTERED TAXPAYERS SYNDROME, and we have lost the will to fight? no wonder they get away with murder, corruption and living in a parall universe. How the hell did we ever become a republic? BRING BACK THE BRITISH! at least we fought them.
 

He3

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My family have the cloud for the next decade....our great politicians as ever get all the silver to throw about as they deem fit.


You know why they appear to be great don't you?
 

He3

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Typical we split a gold mine 50/50. Developers Politicians and Bankers get the Gold and the rest of us get the shaft!
Yep. They get the gas, we get the bill.
 

EvotingMachine0197

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Yeah, and on top of this, the loan interest is granted at 100% whereby the little investor who invested in residential, their interest relief is capped at 75%. And some of these commercial building are rented back to the state.
Yes, it was cut to 75% in April '09 I think. I wasn't aware that it is still 100% for commercial investors. That sucks a bit.
 

He3

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Yes, it was cut to 75% in April '09 I think. I wasn't aware that it is still 100% for commercial investors. That sucks a bit.
It sucks all right. Loophole is too kind a word for this outrageous government sponsored developer scam. Will it be changed in the Budget? Let's watch.
 

il toro

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Tax Relief is relief is avaiable on interest on loans for residential property at 75% of the interest on the loan , and at 100% on commercial property. This tax change took place last year and is a direct tax take of the small investor, as larger investors tend to stay clear of the residential market.

With regard to the OP it should also be pointed that the same developers are also obliged to declare and pay tax, after interest relief, on rents agreed and contracted even if those same rents have not been paid to the developer.

Most of these developers are broke but still have full control of there assets rental income so can spend away even when in default to the taxman and their banks, ( the same person now!!!)

The question to be asked is why are these people able to continue to control the income stream from their assets 3-4 years since this crash happened?
 

A view from England

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Everybody in Ireland has a patriotic duty to withhold tax against the criminals in charge. I myself purchase everything now exclusively from the UK or China over the internet avoiding Irish 21% ripoff VAT.

People must refuse to pay these taxes as part of a non-violent means of removing the traitors from office.

VRT
VAT when possible
Motor Tax
Property Tax
2nd Home Tax
Water Tax

Do your duty and don't give them your money for them to waste and squander.
Whilst understanding your sentiment, the alternative is for the Government to borrow even more money at 7%+ in order to try and keep Ireland going. People need to pay their tax. The fact your Government are a bunch of ************************houses who are protecting the rich does not help but tax needs to be paid.:-(
 

ICallely

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For a minute I thought I might be able to reduce my tax bill to give my kids all that I have worked for but alas it looks like my money will be going to the crooks and gamblers that got this Country into this position.............I didnt have a second home and we only once had a new car 11 years ago but I am going to pay for the people who gambled on the property market which was ludicrious.........ah shur, at least the politicians that helped screw the Country with their friends will be alright.....every cloud has a silver lining I suppose.
I'm sure they're grateful. Don't forget to vote them back in again! Counting on you, good man!
 

ICallely

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Whilst understanding your sentiment, the alternative is for the Government to borrow even more money at 7%+ in order to try and keep Ireland going. People need to pay their tax. The fact your Government are a bunch of ************************houses who are protecting the rich does not help but tax needs to be paid.:-(
I would, respectfully and without rancour, more in the approach of encouraging debate, than trying to insult you, tend to disagree.

At present the system is in paralysis, and the only thing moving in the economy is the public/social welfare sector.

There is no sign of a step change of attitude, or a willingness to rebuild our country and its administration.

If we keep feeding the tax and incompetence culture it will never get fixed, perhaps it is time for the country to go cold turkey.

We need to rediscover the enterprising culture that we created in the 1980s, but within the "legitimise" economy, rather then the "black" economy.

If we stop paying taxes we bring matters to a head, and force a crisis.

The real worry I have about this approach is the impact it will have on those most at risk in the Cities and Towns. Those who are sick, and those who don't have a support network.
 


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