Developers' tax rate cost Exchequer €800m

[The Caped Cod]

Figures compiled by Revenue Commissioners, seen by RTÉ News, show a special lower rate of tax available to property developers cost the Exchequer €800m over seven years.

The tax rate was introduced to free up land for development in the year 2000 and scrapped 12 months ago.
...

The so-called 'Special Incentive Tax Rate' was introduced to encourage the release of land for residential development.

The special incentive rate was 20% as opposed to higher rate of tax of 42% later reduced to 41%.
...

It was used in almost 10,000 cases until the end of 2007 according to figures seen by RTÉ News.

The amount of revenue forgone by the Exchequer at €800m is significant considering urban and rural renewal tax incentives which attracted considerable criticism cost the taxman €2bn.


RTÉ News: Developers' tax rate cost Exchequer €800m

Surprise, sur- fùcking -prise...

[FakeViking]

Just how much would a World Class Children's Hospital have cost over the same period?

[Dreaded_Estate]

This one tax break only scrathers the surface.

When you add in all the section 23, 50 and various other tax breaks to developers the figures would run into the billions.

When you bed it all up it is pretty obvious why we had one of the biggest property bubbles in the world. And why we have a massive oversupply of properties and hotels around the country.

[DCon]

I wonder how much of the 800 million wound up back with FF through the tent?

[goosebump]

When you add in all the section 23, 50 and various other tax breaks to developers the figures would run into the billions.

So the presumption is that had the tax breaks *not* been in place, that all of the development would have taken place anyway?

[DCon]

So the presumption is that had the tax breaks *not* been in place, that all of the development would have taken place anyway?

There are 300,000 empty houses and a lot of zoned land that is surplus to requirements

ALL of the development was not necessary.

[Digout]

Ah sure we are all in this together lads. We are where we are, going forward.

[DCon]

Ah sure we are all in this together lads. We are where we are, going forward.

we have turned the corner, the worst is over, we bottomed out already, the only way is up.

[orbit]

The media seemed to drop the ball on this one. I don't recall this ever being mentioned over the last ten years. Did nobody know about it until it was abolished? Yet, there were apparently 10,000 individual uses of it. Quite amazing.

[goosebump]

There are 300,000 empty houses and a lot of zoned land that is surplus to requirements

ALL of the development was not necessary.

I agree.

But I am disputing the cost the Exchequer.

If the development only took place because of the tax breaks, which is demonstrably the case, no cost arises.

That's fairly straightforward logic.