John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context

Question 111: To ask the Minister for Finance if his attention has been drawn to an arrangement whereby stamp duty on a property transaction can be substantially avoided by using a company sale as an alternative vehicle for the transaction; and if he will make a statement on the matter. [4133/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The transfer of shares in a company attracts a stamp duty of 1%. This stamp duty rate has existed since 1951 at a low rate to encourage commercial activity and is, therefore, not new.

The assets of a company may include land and where that land is sold by the company, stamp duty will arise for the purchaser. Likewise, when a company buys land, it will pay stamp duty.

I am already looking at the operation of stamp duty following a number of allegations that have been made during the last year that there is widespread use by land developers of various mechanisms to avoid stamp duty on land purchases and if I deem it necessary, proposals for change will be introduced by the Government.