Category Archives: Misc

nice2nice1nice

Nice, France earlier this morning.

Commenting on the circumstances surrounding the attack, which saw a white truck loaded with weapons plow through a crowd after passing through a police barricade, Carol Davis, a witness to the attacks argued that the police could have done much more to stop the attacker.

“How did this truck come over the barricade. No car was supposed to get by that barricade. A police car could have just easily come around and stopped it, it should have stopped it,”

Truck attack death toll rises to 80 (AP)

Security here is non-existent’: Eyewitness says massive security lapse led to Nice tragedy (RT)

Pics: Getty/AP

princecharming

A new comedy short from Brainy Films.

Caroline writes:

Dating wisdom says “Don’t be afraid to put yourself out there – what’s the worst that can happen?”. Well, this. This is the worst that can happen.

Written and Directed by Brian Cheatle.
Starring Cillian O’Gairbhi and  Clare Monnelly.
Shot in Anseo, Camden Street, Dublin 2 (courtesy of Eddie)

Brainy

90409476

Stephen Donnelly

Last week Social Democrats TD Stephen Donnelly raised the case of a family – Sarah, Dominic and their two children – who are being evicted from their home in Kilkenny.

But Is there more to this story?

And less to Mr Donnelly?

Frilly Keane writes:

Eviction is rare.

Applications by Secured Creditors for Possession isn’t

But here’s sum’ting else Stephen Donnelly , the Social Democrat that doesn’t wear the purple uniform, didn’t tell us in his Opposition Leaders Questions on July 7, and this is exactly what every County Registrar in the State will ask the Plaintiff Banks and other Institutions seeking Final Orders when they present the Book:

“Balance Outstanding?”

“Amount in Arrears?”

“Monthly Payments Due?”

“Last Payment?”

Now, the latter may, and usually is, expanded: “What were the payments like before that?”

And this is where the Sarah’s and Dominic’s filling up the County Registrars Civil Lists lose all hope. (Assuming they even turn up.)

Stephen Donnelly does a bitta’ve a party piece about the €340k mortgage being written down and sold off; what he didn’t supply was the amount in Arrears and the Last Payments. These are actually the facts that define the true nature of Sarah and Dominic mortgage.

Arrears collect interest and charges like an avalanche collects snow; in other words, that arrears value could well have had a runaway snow ball effect that led to the €340k.

The secured property is currently worth €140k, we’re told, and that’s what’s sustainable, we’re told, that’s what they can afford, we’re told; but what’ve it was worth 240k or 440k?

Writing down mortgage assets, unless the secured property is impaired, say like flooded, pyrite infected, on someone else’s land, or burnt out, will never happen.

So the real news here is not Sarah and Dominic’s mortgage debt; and SD Stephen Donnelly knew that when he pandered to the masses with this ballad.

Because once Dominic and Sarah’s mortgage is deemed unsustainable, which it has to for Possession Orders against a Family home (or as the banks like to say PPR) to commence, there is nothing stopping them qualifying for the Mortgage to Rent scheme.

Unless they don’t qualify for the Kilkenny County Council Housing List because their income is too high, perhaps, (btw do not read this as an endorsement of the current MTR Scheme.)

But it is my assertion that “Eviction” is bullshit drama queening from the Social Democrat one third leader.

If he was serious about Sarah and Dominic and all those in the same shoes, then why did he do a David Hall Dramatic Society sketch rather than I dunno, investigate if the original Mortgage Contract ever even had a chance of surviving its full term?

Was their Mortgage contract ever sustainable? Like, I’m no legal expert but, if there was no real capacity to fulfil the contract to begin with, surely the contract is a bit dodge anyway. (It smells just like that to me btw.)

How about that?

Or what about this Write Down? How much of the €200k Negative Equity is behind the answers to my questions and those of the Kilkenny County Registrar, as noted above?

How about Bruton’s response re the Insolvency Courts; that was wholly incomplete so let me finish it off; a dominant 50%+unsecured creditor can stop an arrangement proposal just like the dominant 50%+secured creditor in the voting requirements.

In other words it’s not just the Banks.

Yes there is a Court Review, but the palaver and hoo haa just to get to calling a Creditor’s Meeting that fails the voting threshold, and then onto that Circuit Court merry-go-round is just too time consuming for any decent Professional to even make minimum wage let alone go up against the deep pockets of the Dominant Creditors looking to make a point.

And it is happening daily. That is why Bankruptcy is still the most efficient option.

Insolvency is, in the main, a Financial Process, yet Bruton and his pals have convoluted it into a Legal Labyrinth and Mandatory Compliance Swamp that makes it unrealistic for independent practitioners to stay independent or even full-time.

Many are Financial Advisors who are still selling mortgages and pensions and whatever yer having yerself for commission from the very institutions that are more likely to appear on any creditor list, secured and unsecured; yet fee influence doesn’t seem to bother the regulations.

Independent Professional Practices cannot give the time to a case that won’t return the price of a tank of diesel to the Circuit Court in Tullamore, so they’ve returned to Family Law, Accountancy etc.

Then you’re left with the big boys like Grant Thornton, who would be no stranger to some of the personnel in IBRC, Mars Capitol, etc. Or MABS … g’luck there.

Governments sell assets all the time. Nothing new there lads, sure we even buy them back ffs.

If you ask me Stephan Donnelly One Third Party Leader is as concerned about Sarah and Dominic in much the same way their local Commissioner Phil Hogan probably is.

If Donnelly was really really arsed, he would have elaborated on their financial behaviour and perhaps put into the record that the, what I called the snowball effect on the debt attached to their family home, would suddenly stop when the County Registrar signs that Possession Order and gives them 9 months stay.

How about mentioning that during the 9 months any number of resolutions can be found before any Execution Order is sought, how about recommending a change to this 9 months maximum to say, I dunno, 18 months minimum?

But the Social Democrat One Third Leader didn’t go near all that. What he did was extract some limelight and bundled it all together, like momentum.

The real news story here is the bollockology around the reported profit of the Secured Creditor- a grand? (my hole it is) and to be fair the SD One Third Leader mentioned this along with a call for a Revenue Investigation, but only just. Sur’ I’ve done that meself.

It is my opinion that he has deliberately clouded up this real story with the Ballad of Dominic and Sarah and their “Eviction” for dramatic effect and sticking power.

Why would the ex McKinsey Harvard man do that?

I get accused here all the time of introducing social issues and losing them in my writing style, yet the ex McKinsey Harvard Man did just that; and there wasn’t an effin’ whimper out’ve anyone.

Another Social Democrat One Third Leader gets to stand up about Charities, which ye heard already from me, and the balancing third gets their turn with a certain Ex-Pat, again. I’ve already shouted out for Revenue and CAB officials to step up and use the powers they already have.

Again and Again and Again.

What are they at? The Social Democrats? Besides being comical with everyone’s a leader, boring the tits off me, and preaching like busy body Resident Association activists whenever they get a chance.

More importantly, where will they end up?

Stephen Donnelly does not want to be a Social Democrat TD, that’s for sure, he wants sum’ting else and it’s not in Leinster house. Purple might be the girls’ colour but Blue is his game.

Roisin will feck off and join the Ministerial ranks again, and Catherine, arra I dunno, she means well and has gravitas but she’ll never get the gig we need her to do anyway.

So let’s hear it! Will their Purple fade to Grey before the next election?

Frilly keane’s column appears here every Friday. Follow Frilly on Twitter: @frillykeane

Screen Shot 2016-07-14 at 16.30.49

 

You may recall how, last week, Social Democrats TD Stephen Donnelly told how a family in Kilkenny – Sarah and Dominic and their two children – were being evicted.

He explained that the eviction was taking place after the Government sold the family’s mortgage to a US investment firm called, Mars Capital.

Earlier today, during Leaders’ Questions, Mr Donnelly returned to the matter and explained that Mars Capital is owned by The Matheson Foundation, a registered charity.

From the debate:

Stephen Donnelly: “Last week I outlined how a US vulture fund structured its Irish subsidiary, Mars Capital, to avoid paying taxes in Ireland on its Irish profits. I believe these vulture funds are about to pull off the largest avoidance of tax on Irish profits in the history of the State. The scale is likely to be in the tens of billions of euro in missed taxes. These are taxes being avoided by Irish companies on Irish domestic profits earned off the backs of distressed Irish families.”

“Irish charities are being used to play a key part in this tax avoidance. Mars Capital is owned by a registered charity, the Matheson Foundation. The stated mission of the charity is to help Irish children to fulfil their potential. It contributes to causes such as the Irish Society for the Prevention of Cruelty to Children, ISPCC, Barnardos and Temple Street Children’s University Hospital. The charity does not mention its ownership of Mars Capital.”

“One reporter I spoke to believes that the charity might own more than 200 companies. At a time when public faith in the charity sector has been rocked yet again, a children’s charity is being used to help a vulture fund avoid paying taxes to the Irish State on its Irish profits.”

“It is very effective. In spite of annual revenues in year one of over €14 million, Mars Capital paid total corporation tax to the Irish State of €250. Companies such as Mars Capital are known as section 110 companies. Section 110 was introduced in 1997 to allow the International Financial Services Centre, IFSC, win global securitisation deals. These involve global companies structuring global assets in Ireland. Their profits were not earned here, so section 110 helps these companies avoid paying taxes here on those profits. The vulture funds are now using section 110 companies to avoid paying taxes in Ireland on Irish profits. Section 110 companies were not created to re-route Irish domestic profits to offshore locations. However, my understanding is that almost all of the vulture funds whose profits are generated in Ireland have section 110 status.”

“How big is the scale of the tax avoidance by these vulture funds? Irish companies typically pay approximately 30% tax on their profits, between corporation tax and dividends tax. Vulture funds typically target minimum returns on their Irish investments of 15% to 20% per year over seven to ten years. That means a €100 million investment by a vulture fund should generate €100 million in taxes for the Irish State.”

“To be clear, the level of taxes being missed by the Irish State is likely to be well over half of the total value of all of the distressed loan books sold by NAMA, IBRC and private banks.”

“Will the Government direct Revenue to cancel section 110 status for all vulture funds in Ireland? Will it provide Revenue with the extra resources to execute this quickly and to reclaim back taxes? Will it direct the Charities Regulator to pull charity status where that status is being used to help avoid Irish tax on Irish profits? Will it direct NAMA to not sell assets to vulture funds if these funds are structured to avoid Irish taxes on Irish profits?”

Tánaiste Frances Fitzgerald: I thank the Deputy. Section 110 of the Taxes Consolidation Act 1997 sets out the taxation regime for securitisation and other structured finance transactions. Under the Taxes Consolidation Act, a qualifying section 110 company is chargeable to tax at 25% but has its profits computed by reference to the rules available to trading companies. As a result, the companies are generally structured in such a way that they are effectively tax-neutral. A company must notify the Office of the Revenue Commissioners in advance of its intention to fall within the scope of section 110. The companies are required to pay their taxes and file their tax returns in the same way as all other companies and are subject to the same monitoring by the Revenue Commissioners, an important point to note.”

“I understand that officials from the Department of Finance and the Revenue Commissioners are currently examining recent media coverage concerning the use of certain physical vehicles for property investments – indeed, Deputy Donnelly has raised this issue before, as has Deputy Pearse Doherty. Should these investigations uncover tax avoidance schemes or abuses which erode the tax base and cause reputational issues for the State, then appropriate action will be taken and any necessary legislative tax changes that may be required will be put forward for the consideration of the Minister for Finance. Therefore, I can confirm that the Department of Finance and the Revenue Commissioners are examining this issue with a view to taking action.”

“I would also respond to the Deputy’s point in regard to charitable status. Clearly, this issue needs examination by the Charities Regulator. I have been in contact with the Charities Regulator and asked him to examine the particular issues which the Deputy has raised about the granting of charitable status and how it is being used by certain companies at present.”

Donnelly: “I thank the Tánaiste for her reply. I am very glad to see the Government is taking this seriously. We could be looking at missed taxes to the Irish State to the tune of €1 billion to €2 billion a year, or even more. If it is €1 billion a year, that equates to some €20 million a week in missed taxes. The section 110 structures were set up for a legitimate reason in 1997 under the Taxes Consolidation Act. They are now being used by nearly all of the vulture funds to take profits generated in Ireland and, very frustratingly, to take profits generated in Ireland by ordinary, decent families trying to pay their way out of negative equity and distressed mortgages. Section 110 was never intended to be used to pull Irish-generated profits out of the country. This is happening on a scale that is potentially worth tens of billions of euro.”

“I acknowledge what the Tánaiste said about the Revenue Commissioners. Will she come back to the House on this issue as a matter of urgency, ideally before the recess? What we should be doing in the finance Bill which is coming up with the budget, or even before that, is shutting this down.”

 Fitzgerald: “I repeat that officials from the Department of Finance and the Revenue Commissioners are currently examining this issue, in particular the use of certain vehicles for property investments. This is clearly an issue of concern, particularly the point the Deputy raised yesterday in regard to the use of charitable status, which I believe needs investigation. The Minister for Finance will take note of the outcome of the investigations that Revenue and the Department of Finance are undertaking at present on this issue. There is no doubt that, if it needs to be addressed, he will address it in a comprehensive way in the budget. It is important that we first have a full analysis to have the entire picture put on the table and see what the results of the investigations are to determine whether changes are necessary.

Transcript via Oireachtas.ie

Previously: The Story Of Sarah And Dominic