Mansergh lashes out at 'unpatriotic' tax exiles: ThePost.ie


TCH Archives > Sunday Business Post > 2004/03/28 > Mansergh lashes out at 'unpatriotic' tax exiles

Mansergh lashes out at 'unpatriotic' tax exiles
Sunday, March 28, 2004

By Sean Mac Carthaigh, Political Correspondent

The influential Fianna Fail senator Martin Mansergh has lambasted Irish businesspeople who flee the country rather than pay their fair share of tax, describing them as unpatriotic.

Speaking in the Seanad, Mansergh also poured scorn on tax exiles who subsequently attempt to ingratiate themselves with the public by making "donations", saying they should stay and pay tax.

But Mansergh praised one wealthy individual, whom he did not name, but said that as "a clue to his identity, he runs a successful airline".

"To be fair,that person is tax resident in this country and has even had his photograph taken with a cheque detailing the several million euro he pays," the Tipperary senator said, speaking on the Social Welfare Bill.

But he lacerated those who quit Ireland rather than pay their taxes, saying that this really "sticks in people's craws".

"There are people who have made out of public assets vast, windfall fortunes before disappearing to some Mediterranean clime," he said.

"If people are very rich,they can keep a large amount of their wealth to spend here," he said.

"Certain people seem to expect enormous praise for particular donations and benefactions they make, whereas they would make a better contribution if they were to remain resident here and, like the gentleman I mentioned, maintained a herd of pedigree cattle to occupy their leisure," Mansergh told the Seanad.

However Mansergh said some Irish people did not pay their tax at home because they engage in substantial economic activity in other countries. Given their substantial investments and businesses abroad, they may need to live and work in several different countries, he said.

"They are in a slightly different category to persons who made their fortunes here before leaving for some other clime simply to avoid paying tax. It is not the patriotic thing to do," he said.

Mansergh was supported strongly by various other senators.

Fianna Fail Senator Mary White said that when she read about these people she wondered "what is wrong with the country that, having made such riches,they want to leave?

"Why are they so greedy that they are not prepared to pay taxes?" she said.

"I cannot understand the state of mind of someone who would do this for tax purposes. It is blatant greed and sets a bad example."

Fine Gael's Feargal Browne also said it was "unfair that people can claim tax exile status and masquerade as great and patriotic Irish men and women".

Labour's Derek McDowell said there was nothing which annoys ordinary taxpayers more than the abuse of the residency rules.

"People who are manifestly Irish and who made their fortunes in the first instance in Ireland now live abroad purely for tax purposes," he said.

"Frequently, they visit the country and leave before midnight, in which case they need not count that particular day as part of their residency for tax purposes," McDowell said.