Joan Burton (Dublin West, Labour)
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Question 162: To ask the Minister for Finance the position in relation to the promised review by the Revenue Commissioners in relation to stamp duty avoidance by developers and others through the use of licensing arrangements or the sale of property through the sale of shares in a company; the number of transactions in excess of €1 million that have occurred in each of the past three years; the location of the properties and land; the values of properties in bands of €1 million and upwards; if the Revenue Commissioners have calculated the amount of stamp duty avoided as a consequence of such arrangements; and if he will make a statement on the matter. [36818/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Stamp Duty is a charge on documents, which are mostly legal documents, used in the transfer of property. Where a property is purchased, stamp duty is charged on the conveyance or transfer effecting change of legal ownership of the property concerned. If there is no conveyance, there is no stamp duty. A builder or developer can, therefore, obtain a licence from a vendor to build on land owned by the vendor without incurring a stamp duty charge at that stage of the venture. Once the buildings, whether commercial or residential, are completed, the conveyances or transfers of such properties to purchasers are chargeable to stamp duty in the normal manner unless specific exemptions are available to such purchasers, for example first time buyers.

I am advised by the Revenue Commissioners that their review of the use of such measures by developers, builders etc. is ongoing and they will advise me of the outcome of the review as soon as it is completed. As advised on in a previous reply on 27 September, it should be noted however that, as the documentation in relation to such arrangements does not have to be stamped, the information necessary to establish the extent of these practices is not readily available to Revenue. Revenue are progressing the review in a broader context as part of their project on the construction sector in 2006.