Taxpayer loses as scheme scrapped

THE taxpayer has lost millions due to a loophole in relief on student accommodation, says the Labour Party.

The scheme was closed off by Finance Minister Charlie McCreevy in the last two days . Investors were granted interest-free loans to purchase student accommodation properties qualifying for tax relief.

The tax relief in question was introduced through section 50 of the Finance Act, 1999 and the terms were enough to allow an investor to put his rent through a charitable organisation for tax purposes. Labour Party spokesperson on finance Brendan Howlin said the minister hinted at dark deeds referring to contrived financial arrangements, special purpose companies and complex financial transactions, but he provided little further information. “Given the minister’s statement, I believe the public are entitled to further information, including such details as the extent of the loss to the Exchequer, the number of such schemes that were in operation, and when these irregularities first came to the attention of the minister and the Revenue Commissioners.