Sinn Féin Finance Spokesperson Pearse Doherty TD has said today’s revelations about the tax bill of Cerberus show why the era of vulture funds operating virtually tax free must end.
He said that although some progress has been made the issue will continue to raise its head as long as any loopholes remain open.
Deputy Doherty said “Today’s revelation of wholesale tax avoidance by Cerberus is hardly surprising as minuscule tax on exponential profits has been part and parcel of life for the Vulture Funds located here over the past number of years.
“For any company to pay €1,900 tax on €77 million profit is absolutely shocking and frankly immoral.
“Much of the underlying value of loan book in question relates to assets in the north and it is concerning that tax on those profits seems to be being avoided in that jurisdiction too.
“I have welcomed changes to Section 110 rules seen in the recent Finance Bill which I had earlier called for in a submission to Minister Noonan. This will see Section 110 status restricted where their activities relate to financial assets deriving their value, or the greater part of its value, from land or property in this State going forward.
“Unfortunately, I think that we are going to see more headlines of this type in years to come as the ability to earn exponential profits tax free is still enabled through Irish tax legislation.
“This is due to the fact that a number of back doors to avoid tax on Irish property assets have been left open. These include tax free rent and gains for those whose hold Irish property in a fund that derives under 25% of its value from Irish property and tax free gains when Irish property is held for over 5 years by widely held funds. These back doors need to be shut immediately in the interest of the Irish Exchequer and for fairness.”
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