Clampdown on tax-avoiding property funds sees tax revenue fall

Irish Times | Jun 14, 2019 at 5:09 AM
  • A Government clampdown on international funds that were avoiding paying tax on their Irish property portfolios has led to a sharp decrease in corporation tax receipts, new figures from the Revenue Commissioners show.
  • Since then section 110 vehicles formed to house Irish property assets are now fully subject to tax at 25 per cent on profits related to the specified mortgages they hold.
  • It is possible that some assets previously housed in section 110s were moved into traditional Irish companies following the clampdown, in order to pay tax at the lower rate of 12.5 per cent, and thus contributed to overall corporation tax yields.