Low tax paid by overseas funds

Sir, – Your article on the 1.37 per cent tax paid by overseas investors (IREFs) in Irish property states that Minister for Finance Paschal Donohoe has moved to close some loopholes ("Overseas funds paid 1.37% per cent tax on IREF income after clampdown", Business, January 16th).

There is no analysis as to why those loopholes were there in the first place. Who lobbied for those loopholes, the overseas investors themselves or the Irish financial advisers and law firms that are ubiquitous in catering and designing for the greed-driven needs of global wealth? The €32.5 million in tax we obtained should have been €474 million if the 20 per cent rate were properly applied. Perhaps it’s what we deserve after facilitating so much corporate tax avoidance which minimised the tax-take of many other countries. Financial advisers are now calling for clarity from Irish authorities on the future treatment of IREFs. So much more in the world of high finance, tax policy and lobbying needs to be brought into the light, including our own complicity. – Yours, etc,

PAUL CONNOLLY,

Cavan.