TAX REFUNDS FOR FAILED DEVELOPERS

The Revenue has refunded more than €1 billion to Ireland’s bailed-out banks and failed property developers over the past two years, according to The Sunday Times.

“It is understood a number of developers have been using income tax refunds, which related to overpayment of their preliminary tax, to fund their lifestyles,” the newspaper reports. “Large tax refunds and the offsetting of trading losses against future profits have been highlighted by the Organisation for Economic Co-operation and Development as a serious concern for the Irish authorities.”

Apparently, banks and other financial institutions received more than €520m in refunds of corporation tax, while builders clawed back €220m. A further €194m was paid out in income tax refunds to developers and real estate agents while builders were repaid a further €73.3m.