asked the Minister for Finance if his attention has been drawn to newspaper reports of the adoption by foreigners of articles of association under the Companies Acts to permit the purchase of land by foreigners without paying 25 per cent stamp duty, while at the same time ensuring that the effective ownership and control of such land remains in the hands of such foreigners; if, having regard to the loss of stamp duty revenue and to the alienation from Irish ownership of agricultural land caused by this process, he will introduce legislation to prohibit the practice; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Purchase of Land by Aliens.
9.
Mr. Ryan
I have seen newspaper reports of the kind referred to by the Deputy. I would point out that the law as contained in section 35 of the Finance Act, 1961, provides that where, in the opinion of the Revenue Commissioners, property has passed into the beneficial ownership, possession, occupation or control of any person in consequence of an arrangement designed to avoid or reduce liability to stamp duty at the £25 per cent rate, the Revenue Commissioners may requisition a statement containing such particulars of the passing as they may require. The statement in question is chargeable with stamp duty at the £25 per cent rate as if it were a conveyance on sale of the property for a consideration in money equal to the value of the fee simple interest free from all incumbrances. Appropriate action under the section in question is already being taken in certain cases which have come to the notice of the Revenue Commissioners.
Mr. Ryan
Would the Minister have an examination made in the offices of companies which have been formed in recent times and in which 51 per cent of the shares is nominally held by an Irish person? The voting power of the shares is frozen by requiring that at least two persons would be a show of hands when a vote is called for and, therefore, if there is only one Irish shareholder, he is not able to get two people to vote without calling on the assistance of a foreigner.
The Deputy may rest assured that the Revenue Commissioners will not be remiss in following up matters of this kind.