| Ireland. Tax issues loom as Cook Island’s owned, Panama registered megayacht ChristinaO goes on sale |
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| Monday, 19 June 2006 | |
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Marian Martin The 324 foot Panama registered megayacht, Christina O, is said to be on sale for a figure in excess of €60 million. A consortium of Irish business men bought the yacht in 2000, for a figure believed to be around €3 million. The subsequent investment of €50 million in restoring the former Onassis yacht was made through Christina Limited Partnership, which is registered in the Cook Islands. The names of those making up the consortium have never been revealed, but a party held on the yacht, following the purchase deal, included prominent solicitor Ivor Fitzpatrick, Fianna Fáil fundraiser Paul Kavanagh, truck dealer Robert “Pino” Harris, who owns the Isuzu, Iveco and Hino dealerships with his brother, Michael Fingleton, Michael Smurfit & Desmond. Harris role in the ChristinaO became well known when it was revealed that the Irish tax authorities were engaged in a legal battle to prevent the self made millionaire from obtaining huge tax rebates because of a loophole in Irish law. This not only designated the yacht as "plant and machinery", but failed to prevent investments by partners in offshore companies being offset against Irish tax liabilities and meant that capital allowances would allow the total restoration cost to be set against other income over a five year period. Last August, the Irish Revenue Commissioners lost the legal battle and, following a High Court order, were forced to give Harris a cheque for €9.1 million, as the rebate for 2001 alone. Tax experts say that the sale of the yacht could mean that a claw back clause, negating entitlement to any rebates, could be invoked, resulting in monies having to be repaid to the Revenue. The 2005 Finance Act closed the loopholes. |
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| Last Updated ( Monday, 19 June 2006 ) |
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