For many years the people of Ireland looked on in bewilderment at the UK electorate getting vexed about large companies and their tax bills. However, there are signs that this is beginning to change.
One of the drivers of this change is the use of securitization companies to acquire distressed Irish bank debt and mortgage books in a tax neutral manner.
While his numbers may be questionable, Stephen Donnelly TD is generating press coverage in relation to residential mortgage acquisitions. The Government minister’s response to his question implying additional Revenue powers was slightly ominous.
Pearse Doherty TD is also raising issues about such structuring.
The IFSC flourished without significant public scrutiny for years, mainly because it was used for cross border tax planning, as distinct from Irish tax structuring. The use of Irish funds vehicles for Irish tax planning purposes may change this.
We await Budget 2016 with some trepidation, it would not surprise us if additional anti-avoidance rules are on the agenda.