Fine Gael’s Tax Regime Under Scrutiny

Ireland is known throughout the world of having a very low corporate tax rate, which draws in many multinational companies. In addition, foreign property investment funds are also paying very low taxes and are walking away with massive profits. Many believe this is hurting the average taxpayer and are calling for an increase on taxes to foreign investors.

A main critique to this is the current housing shortage and how it may encourage less houses being built. However, this fund is buying large chunks of land and holding it to draw prices up and then selling these properties at premium prices. The housing shortage is due to the lack of affordable housing, not high-end luxury houses. Pearse Doherty, finance spokesperson, has been raising this issue publicly after he learned that only approximately 13 million Euros were collected on taxed profits out of the hundreds of millions that the companies earn. One of the tax loopholes that companies use is the Fine Gael’s tax regime. These loopholes allow them to avoid cooperation taxes on rental income and tax on gains if …

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Irish Mortgage Brokers Oireachtas appearance discussed on RTE Radio 1

Our appearance at the Oireachtas finance committee was discussed on RTE Radio 1 on the day, it was about the proposal for mortgage lending caps. The meeting in question took about three hours but the clip the journalist chose was a very good reflection of our general position.

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If we mess with money lenders people will go to loan sharks.

I have written about regulated money lenders in the past, and frankly, I am astounded at the rates they charge . An effort to cap or reduce the extortionate rates has been shot down.There is a market rationale for higher rates than the high street:

1. As they are regulated that creates a compliance cost of itself that loan sharks don’t have to contend with. 2. The type of lending undertaken is beyond ‘sub-prime’ and the default risk is massive. Unlike a loan shark who will beat somebody up, a regulated money lender only has recourse to the courts. 3. Security costs are high, this type of lending is done door to door and collections are usually done in the same manner, the majority of money lenders therefore have to hire security – something which loan sharks tend to do on their own (they are both lender and enforcer).

Does …

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