RTE: Developers paid special rate of 20% income tax during the boom

oceanclub

http://www.rte.ie/news/2009/1202/revenue.html

Property developers were able to avail of a special lower rate of income tax of 20%, it has emerged this evening.

The Revenue Commissioners said the special rate of tax ended in January 2009.

The 'Special Incentive Tax Rate' was introduced in the Finance Act in the year 2000.

AdvertisementThe Revenue Commissioners said: 'The measure was intended to address the problem of a shortage of residential accommodation by increasing the supply of land for residential development.'

It applied to profits made from undeveloped land, partly developed or serviced land and land with completed houses.

Without this provision the property developers would have been liable to normal rates of 41% income tax.

Senna

:eek: Developers got tax breaks :eek:

It applied to profits made from undeveloped land, partly developed or serviced land and land with completed houses.

Could they just not say all land developments

Zamboni

I don't know how RTE can claim it 'emerged this evening' if the information has been publicly available since 2000?

http://www.finance.gov.ie/documents/publications/legi/fnmemo00.pdf

http://www.finance.gov.ie/documents/publications/legi/fbno200.pdf

mrgaa1

but its also incorrect - there was a change done in 1999 budget because farmers were whinging they had to pay 40% tax on the land so as development land was in short supply the budget changed this to 20% for farmers, 20% for developing. An important point that was not highlighted very well - sensationalism is still alive and well in the papers. FACTS are important - why are the papers not hounding the government day after day after day. Because when one jumps into bed with a partner and the relationship is cosy one is highly unlikely to jump out unless a better partner in a better bed offers more.

jmayo

mrgaa1 wrote: »

but its also incorrect - there was a change done in 1999 budget because farmers were whinging they had to pay 40% tax on the land so as development land was in short supply the budget changed this to 20% for farmers, 20% for developing. An important point that was not highlighted very well - sensationalism is still alive and well in the papers. FACTS are important - why are the papers not hounding the government day after day after day. Because when one jumps into bed with a partner and the relationship is cosy one is highly unlikely to jump out unless a better partner in a better bed offers more.

Eh so why, as asked of vice president of CFI this morning, weren't this breaks rolled back when the bubble was gathering steam ?
Are you saying it's all the fault of the farmers now ?

Ste.phen

jmayo wrote: »

Eh so why, as asked of vice president of CFI this morning, weren't this breaks rolled back when the bubble was gathering steam ?
Are you saying it's all the fault of the farmers now ?

And why wasn't he asking this as the bubble was gathering steam?

mrgaa1

theres a building in Dublin called the Dail - call in there and ask the questions. When there you could ask what are they doing about the lazy public servants who take strike days to go north for shopping. Why hasn't the government cut VAT to keep shoppers south, why haven't they DEMANDED that the cost of business in the south be cut to keep shoppers so that they can be "patriotic".
ask them why NAMA is going to wash all the dirt out of the system and allow the REAL rich people in Ireland to buy up land at prices never seen before.
Ask them why the banks that are going to get 10's of billions from NAMA then going to need more money to keep them going?
And finally ask them who is really running the country?