Tipperary TD proposes key amendment to Finance Bill

Tipperary TD Mattie McGrath, leader of the Rural Independent Group, has submitted a crucial amendment to the Finance Bill, which will be discussed in the Dáil on Tuesday.

This amendment aims to ensure that investment funds, often known as “vulture funds,” and credit service firms like Pepper Ireland, are held accountable and operate transparently.

Speaking from his constituency today (Monday, 4th November), Deputy McGrath stated:

“The proposed amendment aims to reclassify Special Purpose Vehicles (SPVs) utilizing Credit Servicers as ‘investment undertakings.’ This pivotal change mandates Credit Servicers to deduct tax at source and serve as local agents for SPVs in their interactions with Revenue. This measure is essential to prevent these entities from evading tax responsibilities.

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“It is crucial to emphasize that I firmly regard profit participation as a form of tax avoidance. Therefore, such profit ‘participation’ should not be tax-free, not even a ‘reasonable return’ portion. Furthermore, the lack of transparency behind Central Bank closed doors raises significant concerns about potential undisclosed activities, with all QIAIF schemes now enveloped in ‘Swiss bank-style’ secrecy.

“We urge other TDs to support this amendment, which is designed to hold Vulture Funds accountable. Presently, vulture funds control approximately 100,000 mortgages in Ireland, affecting numerous family homes, small businesses, and farms. These funds operate through Credit Servicers regulated by the Central Bank, allowing them to remain detached from borrowers and evade direct accountability. This amendment aims to ensure that Credit Servicers are responsible for the taxes and returns owed by these funds, aligning them with other business entities.”

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