Joan Collins (Dublin South Central, Independent) | Oireachtas source

There seems to be a very softly-softly, kid-gloves treatment of certain well-heeled taxpayers by the Minister for Finance and the Revenue Commissioners. Did I say "taxpayers"? Sorry, I meant to say wealthy people who are abusing our tax laws in some cases or, in other cases, engaging in outright tax evasion. In the first group, wealthy people are using a loophole to transfer wealth to their children without paying inheritance tax. They are using the dwelling house exemption section 86 relief which was introduced in 2000. Under section 86, second and, in some cases, third and fourth homes are being bought for children, often for more than €1 million. The children live in these homes for a period and can then inherit them tax free when their parents die. Ordinary people do not have that choice and must pay inheritance tax at 33%. In many cases, families have to sell off their family homes to pay inheritance tax. The abuse of the scheme has been of concern to Revenue for years. It was expected the loophole would be closed in budget 2017 but it was not. The Minister has said he is considering the issue. What is there to consider? It is a loophole and as such one closes it. The opportunity is still there but I have read through the Finance Bill and it is not even mentioned. I was also amazed to see tax evaders use offshore companies. People who have already been identified by Revenue have been sent a friendly letter warning them and giving them six months to get their tax affairs in order. Why is that? Any ordinary taxpayer who owes money to Revenue is told he or she must pay upfront and over a period of time.

Why is there such reluctance on the part of the political establishment to make very profitable companies and wealthy individuals pay tax in this country? I want the Taoiseach to explain to the people of Ireland why the opportunity is not being taken in the Finance Bill 2016 to close the tax rule on the dwelling house exemption in respect of the section 86 relief.

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