The Irish Times view on property investment funds: Doing the Reit thing
Closing tax loopholes
Minister for Finance Paschal Donohoe took aim in his budget speech at the “aggressive behaviour to avoid tax” among Irish Real Estate Funds. File photograph: Getty
Remember Budget 2017? It was supposed to close loopholes used by overseas funds and high-net-worth individuals to minimise tax bills on profits from Irish property snapped up following the crash. Now the Government is back to tie up some loose ends which, it estimates, should generate about €80 million in taxes a year. In other words, the exchequer lost out on €240 million over three years.
Minister for Finance Paschal Donohoe took aim in his budget speech at the “aggressive behaviour to avoid tax” among Irish Real Estate Funds (IREFs). That’s a class of fund brought in under the 2017 clampdown to ensure the ultimate owners of funds with large Irish property investments face a 20 per cent tax on any income they receive.