Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the annual tax that would be generated from applying a 2% tax on the current market value of residential property whose registered owner is not a natural person but a corporation or trust or other non-natural person. [43267/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that, as they do not have a statistical basis for compiling estimates of yield in relation to proposals for the taxation of residential property, it is not possible to provide the information requested by the deputy. While there are data sources which provide information on property ownership – for example, the Property Registration Authority and the databases for the Non-principal Private Residence charge and the Household Charge – none of these sources has information on current valuations and therefore it is not possible to estimate the yield that would be generated from a 2% tax on residential property whose registered owner is not a natural person.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the annual loss to the Exchequer of stamp duty on property transfers being avoided as a result of property being transferred via shares in companies including companies incorporated in other jurisdictions, or through changes to trusts. [43268/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that Stamp Duty is a charge on documents, which are mostly legal documents, used in the transfer of property. The current rates of stamp duty on the transfer of property are:

*For non-residential property, 2% of the purchase price

*For residential property, 1% on the amount of the purchase price up to €1m and 2% on the excess over €1million.

The rate of stamp duty on the transfer of shares is 1%. Shares in a foreign company are not Irish situated assets. Accordingly, a charge to stamp duty does not generally arise on the transfer of such shares. Where property is held on trust, a liability to stamp duty can arise where there is a change in the underlying beneficial ownership of the property on the documentation executed in connection with the change of ownership.

It cannot be assumed that a decision to hold property through a company, rather than directly, is intended to facilitate the avoidance of stamp duty. In general, such decisions are taken primarily for commercial reasons.

I am informed by the Revenue Commissioners that as the purchase and sale of shares are chargeable with stamp duty at a uniform rate of 1% without regard to the nature of the underlying assets in the companies in question, it is not possible to separately identify the stamp duty paid on shares in companies whose value derives wholly or partly from property.