Re: Re: Smithfield Market Development
I’m not so sure Jim, property is a fixed asset that goes on beyond the lifespan of the tax-breaks unlike bloodstock, at the end of the ten-year period of the relief or the finance period on the asset; the income from the property becomes taxable. If the asset is transfered it is subject to CGT Capital Gains Tax and everyone employed in the design, construction, disposal and management pays tax. As the Tribunals have shown many very wealthy people in Ireland have very sophisticated ways of both avoiding and evading tax, at least with a properly refined Section 23 incentive scheme the money remains in the Country and will acheive an objective that most Local Authorities want to acheive but don’t have the funds to implement them.
The grant fund scheme is a good idea but it has one fatal flaw it is a pro-cyclical idea or at times when demand is highest ie at times of economic strength governments have the resources to implement these schemes but conversely when the economy is weak these schemes are always amongst the first programmes cut. Tax relief in contrast allows the government to relax regulations in recession and attract private individuals to borrow private money to raise demand in the labour intensive construction industry. The revenues are lost over a ten year period over which typically the fiscal position should be healthy for at least 6-7 years.