Government only window dressing on tax avoidance measures - Pearse Doherty TD
Sinn Féin Finance spokesperson Pearse Doherty TD has said the government must deal comprehensively with the issue of tax avoidance by property investments in Ireland.
Deputy Doherty said dealing with the abuse of charity status, while necessary, will not address the vast majority of tax avoidance in this state.
Speaking today he said things like ICAVs (Collective Asset-Management Vehicles) and QIAIFs (Qualifying Investor Alternative Investment Funds) which are used to avoid tax in Ireland are deliberate government policy rather than loopholes.
Teachta Doherty said;
“It looks like we may finally have some movement from government on the issue of the abuse of charity status by some companies. However, my fear is that this is simply a window dressing exercise from a government hoping to give the impression that it is taking a tough line on tax avoidance.
“The problem is that dealing with the abuse of charity status, while necessary, will not address the vast majority of tax avoidance in this state. Section 110 companies do not need charity status to avoid paying tax.
“There are other ways in which vulture funds avoid paying tax including the use of ICAVs and QIAIFs which are used by non resident property funds to abuse our taxation legislation. These funds have aggregate holdings of billions of euros in Ireland meaning a huge loss to the public purse here to the detriment of our schools and hospitals etc.
“Michael Noonan has already given me a commitment that any necessary legislative changes will be made should it be found that non resident property funds are engaged in tax avoidance schemes.
“The mechanisms that are being used to deny massive amounts of money to the public purse need to be closed down immediately. These include ICAVs and QIAIFs which are deliberate government policy rather than loopholes. Minister Noonan should act on the commitment and close these down immediately.”