Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I have acknowledged changes that have been introduced in the Finance Bill. I have also acknowledged that some of those changes have happened because of amendments I have tabled or by exposing areas where loopholes have existed in the past. I acknowledge that the Minister and his officials have introduced amendments to close them. However, he allowed Green REIT to get away with blue murder last year. He allowed it to get away with not paying over €90 million in tax because he allowed it to pay stamp duty at 1%. Where there is acknowledgement - fair play to the Minister and his officials on those issues - there must also be acknowledgement that he is letting them away without making their fair contribution in tax, which I believe is also their duty. He mentioned shares where 7.5% stamp duty applies where there is development of property. However, the problem is that REITs are not developing the property. Therefore, the stamp duty that applies to them is just 1%.

The Minister has said he will keep the 2% surcharge under review to see how it will operate and will look at it next year. These entities do substantial damage by buying property, pushing up house prices and pushing first-time buyers out of the market because they are non-residential purchases. CSO figures show the numbers that have been purchased in the past, particularly in concentrated areas as I have mentioned.

I will continue to pursue this. The Minister points to the role of REITs in being a commercial landlord, which is fine. However, I believe they should not have a tax advantage that other structures do not have. That is where we differ significantly. It is really challenging and frustrating because we have been dealing with this for four, five or maybe even more years. It is painfully frustrating trying to get the Minister to close some of these loopholes. I am sure in his rebuttal he will say that where they have been pointed out to him, he has closed them. He has done so in some, but it was pointed out to him that Green REIT was able to pay stamp duty not at 7.5% but at 1% when it sold its properties and he did nothing. He actually facilitated it, which resulted in €90 million lost to the Exchequer.