Should property-based tax reliefs be scrapped? Last few days of public consultation.

[Brendan Burgess]

[broken link removed]

Period of Consultation: 23 June 2011 to 29 July 2011
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The Minister for Finance, Michael Noonan, T.D., has initiated a public consultation as part of an economic impact assessment of the potential effects of amending, curtailing and/or abolishing the legacy property-based tax reliefs.

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The purpose of this consultation is to consult with all parties on how the impact assessment should proceed in determining an appropriate policy approach to the legacy reliefs. There are a wide range of issues that could potentially influence the final outcome of the impact assessment. The Department of Finance is keen to hear from all parties on these matters at an early stage. Comments on potential policy approaches that could be adopted, methodologies that may be used in the assessment and possible data sources that might be relied on are all welcome.

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Interested parties are invited to respond to the consultation paper. The closing date for responses is 29 July 2011. Full details on how to make a submission and a list of the consultation questions are set out in the consultation paper below.

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Any updates relating to the constultation will be published on the Department of Finance Tax Policy website [broken link removed].​

 

[Brendan Burgess]

If you have a property affected by this, you should make a submission. I got this email today. I don't fully understand the issues as I don't have any of these properties, but I assume others in this forum will know about them.

[FONT=&quot]As you know,[/FONT][FONT=&quot] the Finance Act 2011 (section 23/24) provides for removal of all property reliefs – after the impact assessment now underway.[/FONT][FONT=&quot][/FONT]
[FONT=&quot]I have already been discussing and meeting with TD’s on this issue to focus their minds.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The[/FONT][FONT=&quot] key is to ensure the Department of Finance really and truly appreciates the unintended consequences in conducting the impact assessment (Finance Act section 23).[/FONT][FONT=&quot][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Their Consultation Paper (published 23 June) shows the clear limits of their data (paragraphs 3.22/3.23) and reflects the absence of any focus on debts burdens and ability to pay additional taxes being imposed. See [/FONT][broken link removed][FONT=&quot][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]All purchasers with investment mortgages[/FONT][FONT=&quot] [/FONT][FONT=&quot]are[/FONT][FONT=&quot] already in negative equity and now also fac[/FONT][FONT=&quot]e[/FONT][FONT=&quot] negative cash flows as well[/FONT][FONT=&quot] – this will sink many[/FONT][FONT=&quot].[/FONT]
[FONT=&quot] [/FONT][FONT=&quot][/FONT]
[FONT=&quot]We need to ensure that EVERY ONE of us affected sends an email to the Department of Finance at taxconsult.june2011@finance.gov.ie before 29 July – however brief – telling of the personal impact on them of abolition of the property reliefs.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Government doesn’t seem to understand the fact that there wouldn’t be more tax revenue generated – only more bankruptcies and tax defaults and debt foreclosures and bank write downs and government bailouts and recapitalisations.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The real practical solution is to provide a cap on the annual relieved amount, thus maximising the government tax revenues, while avoiding many bankruptcies.[/FONT]
[FONT=&quot] [/FONT]

 

[slygo]

In my submission to Department of Finance Impact Assessment I focussed on debt burdens and non-ability to pay extra taxes.

The solution can be made Revenue neutral by

1. protecting those at most risk with the highest debt burdens – keeping the long term ‘tail’ so that debts can be serviced
2. curtailing reliefs (annual cap) for those with sufficient incomes and
3. increasing Case V income tax rates for those debt free owners who could afford more cash outflows

Everyone should be lobbying their local politicians to wake up and realise they will not collect extra tax revenues and only force more bankruptcies.

This will be the next leg of the ongoing property/banking collapse saga.

 

[Knuttell]

In my submission to Department of Finance Impact Assessment I focussed on debt burdens and non-ability to pay extra taxes.

The solution can be made Revenue neutral by

1. protecting those at most risk with the highest debt burdens – keeping the long term ‘tail’ so that debts can be serviced
2. curtailing reliefs (annual cap) for those with sufficient incomes and
3. increasing Case V income tax rates for those debt free owners who could afford more cash outflows

Everyone should be lobbying their local politicians to wake up and realise they will not collect extra tax revenues and only force more bankruptcies.

This will be the next leg of the ongoing property/banking collapse saga.

Fair play to you for the helpful suggestions made to the Minister of Finance in helping the State renege on its side of the agreement,I take it you fall into category 1 in this submission??
You have missed the whole crux of the proposed abolition of sec 23,its an attack on the property rights of the investors who signed up to it in good faith,doubtless this will end up in the High Court and almost certainly without any financial contribution to the legal proceedings from yourself...after all your all right arent you Jack.