AONTÚ PUBLISH LEGISLATION TO DELETE TAXATION ADVANTAGES OF REITS OVER FAMILIES
At the launch of Aontú’s Dublin Bay South Bye-Election Candidate, Mairéad Tóibín, Aontú published a significant new Bill, the Finance (Real Estate Investment Trusts) Bill 2021 which will delete from Irish law the taxation advantages afforded to REITs over Families which have radically distorted and rigged the Irish housing market.
An Teachta Tóibín: “REITs, International Investment funds and Vulture Funds have been let loose on the Irish people for far too long – under the pretext of economic necessity. Ires REIT – Ireland’s largest private residential landlord – owns 3,700 residential properties in Dublin and Cork. Hibernia REIT have a €1.4 billion Dublin property portfolio, €159 million (11% approximately) of which is residential properties! These are investment vehicles worth billions which have no taxation obligations in this country and are turbo boosted in the fight for properties in the Irish housing market. That gravy train must stop now. It is time for these investment vehicles to begin contributing to Irish society and paying taxes. It is time for there to be genuine ability for families to buy homes when housing estates go to market. The game has been rigged for far too long – against the working men and women of this country. Aontú’s legislation is the first step in injecting fairness back into our housing market.”
“Our Bill changes the definition of ‘rental income’ in Part 25A of the Taxes Consolidation Act 1997 as amended, so that rental income from residential premises ceases to be ‘rental income’ within the meaning of Part 25A. This in turn means that business regarding residential premises no longer counts as ‘property rental business’ within the meaning of Part 25A. As a result, the corporation tax and capital gains tax exemptions which REITs currently have under Part 25A in relation to their ‘property rental business’ cease to apply to the residential property part of their business. In this way, Section 3 of the Bill removes those special privileges for REITs, in relation to residential property and income from such property”.
Mairead Tóibín: “The FF/FG housing market is pitting REITs against families on a daily basis in a David versus Goliath battle where they can only be one winner. FG and now Fianna Fail are creating a tenant class the likes that has been not been seen it Ireland since landlord times. The housing policy of the Irish government should not be to give a blank cheque to international investors and pit young families climbing the property ladder against vulture funds. Aontú will level the playing field between REITS and families. Today, Aontú is publishing it’s legislation to delete the unfair advantages that REITs enjoy that exempt these international investors from tax liability and which are directly costing Irish people the chance to own their own home. REITs, International Investment funds and Vulture Funds have been let loose on the Irish people for far too long”.