Lenihan refuses to close Golden Circle's tax loophole, as cuts to welfare are threatened

Posted on November 10, 2009 at 07:39 PM

Today's Leaders' Questions saw the Labour Leader Eamon Gilmore TD raise an issue uncovered by our Finance Spokesperson Joan Burton TD regarding millionaires' tax loophole.

Eamon's questions centred on the Golden 10, the people who were lent money by Anglo Irish Bank to buy shares in order to bail out the bank and bail out an even larger shareholder. In her parliamentary question, Joan asked if it was the case that the Golden 10 can write off their losses against future capital gains tax liabilities. In his reply Minister Lenihan confirmed that this was the case and said he had no plans to change the law.

Eamon said: "We have a situation where the persons who borrowed this money and who contributed to the difficulties in the banking system, leaving tax payers with a loss of €300m and will be able to claim tax relief on losses the taxpayer is already carrying, while, on the other hand, the Government is telling parents to expect reductions in child benefit.

"There is no similar arrangement for those unfortunate householders who are now in negative equity and who may have to sell their homes because they cannot pay the mortgage or because they have to emigrate. They cannot write off losses against future tax liability as the Golden 10 have been allowed to do."

You can see Eamon's full contribution in the accompanying video and read the full debate on the Oireachtas website. You can also read the parliamentary question tabled by Deputy Burton on the Oireachtas website.

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Tagged with Finance