Tax regimes for vulture funds need to be examined – Doherty
Sinn Féin TD Pearse Doherty has said the tax regime that allows such huge breaks for vulture funds must be looked at with a view to ensuring they pay a fair amount of tax.
Deputy Doherty said:
“In many ways, vulture funds were the dirty little secret of the recovery in property in the last few years. Now however the social consequences of relying on these types of capitalists as a solution are becoming clear. The families whose mortgages were sold off in recent years already know how these funds operate.
“In light of the disturbing reports of huge profits on the back of Irish society, with negligible tax being paid on these profits by both Cerberus and Goldmans Sachs subsidiary, Beltany Property Finance, it is time to reopen the tax regime for these funds, as well as looking at legislative changes to tighten up on their aggressive ways.
“Through a series of complex taxation arrangements, these bodies are receiving a significant, if not complete, reduction in their Irish tax bill. As was recently reported, Cerberus's accounts for 2014 show that it generated over €140 million of revenue on its Irish assets, but paid less than €2,500 in tax. Likewise, Beltany’s 2014 accounts show that it generated income of €44 million but managed to pay just €250 in corporation tax.
“Sinn Féin is very concerned about the possibility that there is wide-spread tax avoidance being engaged right across this sector.
“It seems apparent that the Irish Exchequer is missing out on massive sums of taxation which it should be rightly due.
“We are calling for a full review of effective tax rate being paid by all major vulture funds and Real Estate Investment Trusts operating in Ireland and for the mechanisms to be put in place to ensure that major international and institutional investors pay an appropriate amount of taxation on income and gains.”