Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I thank the Deputies for their contributions. I want to come back on a number of points relating to Financial Resolutions Nos. 7 and 8 and some changes to section 110 in the forthcoming finance Bill. We estimate that in the region of €80 million will accrue from the changes we are making in these resolutions in terms of the changes to the taxation regime and trying to go after people aggressively avoiding tax. It is important that we support long-term investment in rental properties. In making these changes, we are trying to prevent people from aggressively avoiding tax but we are also trying to ensure that those investing here pay their fair share of tax while making a long-term investment in the property market. If we look at the residential property market and the increase in apartments coming off the back of these new investments, there was a 42% increase in the number of apartments built in the first six months of this year and planning permissions increased by more than 80% in the same period. It is producing supply but I agree that we must continue to monitor the situation.

We are not late to the game on this. We set up the IREF structure in 2016 because of the aggressive tax practices being pursued through other fund structures. We set up REITs on purpose to get more investment into property in order to ensure that we could get more homes built. After the financial collapse, the funding structure for property and investment changed and we needed to adapt to the new models that were out there.

Regarding being late to the game, the first accounts for these companies were only filed at the beginning of this year. This is our first opportunity to move and we have moved very quickly, based on consultation with Revenue and others to ensure we can close down these aggressive tax practices. We are doing that quite quickly.

There are approximately 210,000 apartments nationally of which 1.4% are controlled by REITs. While they control some, it is a very small percentage at present. We know there is now more activity and that is why it is important that we continue to monitor it. I have given that commitment as Minister for Housing, Planning and Local Government. We have also introduced these new structures under rent controls, which were not there originally. We did that earlier this year. There is now more money for the RTB to enforce reflections of rent-pressure zones to ensure they are working, but also to keep it under review from the point of view of the Minister for Finance. It is important that we continue to do that. Those commitments have been made by the Minister.

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