Dáil Éireann Debate, Tuesday - 9 October 2012
184. Deputy Pearse Doherty asked the Minister for Finance the annual loss to the Exchequer of stamp duty on property transfers being avoided as a result of property being transferred via shares in companies including companies incorporated in other jurisdictions, or through changes to trusts. [43268/12]
View answerI am advised by the Revenue Commissioners that Stamp Duty is a charge on documents, which are mostly legal documents, used in the transfer of property. The current rates of stamp duty on the transfer of property are:
*For non-residential property, 2% of the purchase price
*For residential property, 1% on the amount of the purchase price up to €1m and 2% on the excess over €1million.
The rate of stamp duty on the transfer of shares is 1%. Shares in a foreign company are not Irish situated assets. Accordingly, a charge to stamp duty does not generally arise on the transfer of such shares. Where property is held on trust, a liability to stamp duty can arise where there is a change in the underlying beneficial ownership of the property on the documentation executed in connection with the change of ownership.
It cannot be assumed that a decision to hold property through a company, rather than directly, is intended to facilitate the avoidance of stamp duty. In general, such decisions are taken primarily for commercial reasons.
I am informed by the Revenue Commissioners that as the purchase and sale of shares are chargeable with stamp duty at a uniform rate of 1% without regard to the nature of the underlying assets in the companies in question, it is not possible to separately identify the stamp duty paid on shares in companies whose value derives wholly or partly from property.
