Bertie Ahern, Eamon O’Cuiv, Bono and Charlie McCreevy are the four apocalyptic horsemen of the blog, galloping ahead of the plentiful field in the Featuring on Gombeen Nation Stakes.One of them, Ahern, today defended a Fianna Fail tax dodge introduced on his watch for the party’s developer buddies: the Special Incentive Tax Rate. The break allowed developers to pay tax of 20% on their landbanks, rather than the previously applicable rate of 42%.
The move was ostensibly intended to “encourage” developers to release their landbanks for building. Nonsense of course, as with any of the other property tax measures, the builders/developers simply waited and sold their assets at whatever inflated amount the banks were prepared to recklessly advance to buyers, then pocketed the extra profit.
Ahern is quoted defending the squalid scam to RTE by saying that “the place was disastrous” when the tax incentives were introduced. Well it's a lot more "disastrous" now, Bertie, isn't it?
What he also neglects to acknowledge is that this particular measure was introduced in 2000 (it may even have been 2001) when the property bubble was already inflating alarmingly. All in all, the Special Incentive Tax Rate cost the exchequer €800 million by the time it was finally scrapped in 2009, while also contributing to unsustainable asset price inflation.
And which finance minister introduced it? Yes, fellow horseman Charlie McCreevy. He, along with Ahern, of course, recently denied they had any part in creating the current economic mess.
And I thought the horse wore the blinkers.
Back to Gombeen Nation main page
















