Anglo Golden Circle & Revenue Commissioners?

I M Wright

Can anyone out there tell me out whether they're any tax implications in regards to the structure of these loans and the eventual writing off of these liabilities?

Is it still the same old story that I can give you a loan (instead of a gift for capital gains tax purposes) and then just write off the loan? I think the reason why Frank Daly was appointed a director of Anglo Irish Bank is now becoming clearer.

As per the Anglo website on director Frank Daly

FRANK DALY (63)
joined the Board in December 2008. A former Chairman of the Revenue Commissioners, he was also a Commissioner and Accountant General. He is Chairman of the Commission on Taxation and has served on the civil Service Top Level Appointments Committee. He holds a BComm and a Diploma in European Community Law.

Dannyboy83

A very good point and very typical of the sly tactics that have been used by the banks in order to legally execute their treachery.

I don't know the answer, but I will ask.
I'm sure they could find some way to write off the tax liabilities anyway to be honest, if they exist.

So much of it is well planned and so many little loopholes (e.g. the golden circle not having to declare to the stockmarket their acquistions of CFDs converted to shares because they had a 1% purchase as opposed to a 3% purchase).

It reminds of me a documentary I saw on the history channel one time about the BIS (Bank of International Settlements) in Switzerland, which was used to transfer 24Billion in gold from the Bank of England through to Hitler's Reichsbank............after the invasion of Poland and declaration of war by England and France.

I'm not a religious man by any means, but all that lark Jesus was on about - the bankers getting to heaven is like an elephant fitting through the eye of a needle, well, it brings it home doesn't it.

I prefer the Arnlod Schwarzenegger course of action to the Jesus course, tho, why wait for them to get to heaven?

Instead organise a lynch mob and send them on their way.

Do you remember when lynch mobs got together in Dublin in the 90s to oust heroin dealers?
It would be sweeter than revenge if the same thing happened with the likes of some "those".

Rockshamrover

Dannyboy83 wrote: »

I'm not a religious man by any means, but all that lark Jesus was on about - the bankers getting to heaven is like an elephant fitting through the eye of a needle, well, it brings it home doesn't it.

.

Is it not "It's easier to stick a needle in a rich man's eye than it is to pass a camel"?

Dannyboy83

Rockshamrover wrote: »

Is it not "It's easier to stick a needle in a rich man's eye than it is to pass a camel"?

PMSL:D

Berti Vogts

I M Wright wrote: »

I think the reason why Frank Daly was appointed a director of Anglo Irish Bank is now becoming clearer. QUOTE]

He was appointed a director of Anglo along with Alan Dukes by the government. What are you suggesting? It's frankly laughable if you think that Frank Daly was appointed to the board of Anglo so he could advise "the golden circle" on how to minimise their tax liabilities.

A Dub in Glasgo

Just as laughable as thinking that property developers and the givers of brown envelopes will get a bail out using tax payers money?

Berti Vogts

A Dub in Glasgo wrote: »

Just as laughable as thinking that property developers and the givers of brown envelopes will get a bail out using tax payers money?

Somehow, I think they have their own tax advisers without needing Frank Daly's input.

marknoonan1974

A Dub in Glasgo wrote: »

Just as laughable as thinking that property developers and the givers of brown envelopes will get a bail out using tax payers money?

Thats the Fianna Fail way.

Victor

I M Wright wrote: »

Can anyone out there tell me out whether they're any tax implications in regards to the structure of these loans and the eventual writing off of these liabilities?

It seems the shares were bou8ght through nominee companies, so I don't think ther eis any tax liability.

BroomBurner

Didn't want to start a new thread, but what's the betting that there are no incriminating documents found after todays raid on Anglo-Irish?

The only reason it went ahead was because the government were wounded after saturday and wanted to show they're doing something. They wouldn't have done it otherwise. If they were going to send in the fraud squad before now, they would have and not left it long enough for any documents to be shredded.

Victor

Of course, banks have the habit of backing up everything off-site.

Dannyboy83

I M Wright wrote: »

Can anyone out there tell me out whether they're any tax implications in regards to the structure of these loans and the eventual writing off of these liabilities?

Is it still the same old story that I can give you a loan (instead of a gift for capital gains tax purposes) and then just write off the loan? I think the reason why Frank Daly was appointed a director of Anglo Irish Bank is now becoming clearer.

As per the Anglo website on director Frank Daly

FRANK DALY (63)
joined the Board in December 2008. A former Chairman of the Revenue Commissioners, he was also a Commissioner and Accountant General. He is Chairman of the Commission on Taxation and has served on the civil Service Top Level Appointments Committee. He holds a BComm and a Diploma in European Community Law.

I spoke to a Revenue member about this today.
Answer as follows:

A. If the money is a gift, the person pays "Capital Acquisitions Tax (CAT)" of 20% on the sum

B. If the money is a loan, no tax is paid
i) In the event that the loan is written off, there is no tax liabilitiy and no consequence other than to significantly damage the credit rating of the individual receiving the loan
ii) In the event that the loan is written off, before a repayment has been made or other under dubious circumstances, there are serious grounds to investigate wheter it has been a true loan in which the benefactor's circumstances have changed significantly so as to render the loan unbearable.
In this case, if its determined that the loan was a gift as opposed to a genuine loan, the benefactor is liable for oustanding tax of 20% of the sum under CAT provisions.
iii) In the event that the loan is written off, before a repayment has been made and there has been no genuine effort on behalf of the lender to recoup the interest payments on the loan, this is a strong indicator that it is a gift disguised as a loan, in which case the benefactor is liable for CAT and there are potential legal implications with revenue regarding Tax Evasion.

(On the sly, in the event that the benefactor in question already pays a large amount of tax or has a large amount of employees/PRSI, these things can be given a blind eye or delayed repayments at least to revenue in terms of the outstanding tax liability (CAT))