When being questioned at an Oireachtas Committee, Brian Lenihan confirmed that he is powerless is stopping developers moving to foreign shores. Whilst freedom of movement is a fundamental right, these developers are using more lenient Bankruptcy Laws to protect their assets. For example, Pension Pots are protected under Bankruptcy Laws in the UK and to avail of their laws you only need to be Domicile in that country.
Developers can flee but 'will not escape' - National News, Frontpage - Independent.ieFINANCE Minister Brian Lenihan yesterday admitted he was powerless to stop indebted developers and bankers from upping sticks and starting new lives abroad.
No idea what the rules are in other countries but given that many developers and others, e.g. David Drumm have built up substantial pension pots, we may never access them. Drumm also has moved to Massachusetts who have a spefic law applicable to the state where a homestead is protected against creditors. Nice protection for a $4.6m house.
Ex-Anglo chief Drumm's application shows he's bound for US - National News, Frontpage - Independent.ieAccording to Massachusetts state law, such a declaration technically protects the homeowner from creditors' efforts to recover debts in the event of a forced sale. This type of declaration is a standard legal procedure in Massachusetts.
Now I know that most of these would prefer to be living their lives in the lap of luxury here in the manner that they were used to but this really is sickening. These pension pots were built up from Company Money, pre tax so zero tax was paid when funding the pension and the funds that they grew in are exempt from tax but we are now being refused access to the capital and we are also being refused access to the tax charge on the benefits as these will be taxed in the country of receipt.