Developers to stay afloat using tax refunds on property

[webtax]

http://www.tribune.ie/news/article/2008/sep/28/developers-to-stay-afloat-using-tax-refunds-on-pro/

Does this mean that we will finally get some clarity on the true value of the banks property assets? Presumably if they are asking their property developers to reduce the value of their land to claim tax refunds, they will have to reflect these value impairments in their own audited accounts?

And how will Brian Cowen feel when he sees the developers he was trying to bail out are busy trying to increase his budget deficit further?

 

[papervalue]

This is legal- a company is allowed to carry any loss in a year back one year and claim a refund of tax egcompany paid 50*12.5%=6250tax last year. it made a loss of 100k in current year- 50 carry back and 50 carry forward and they get back 6250.

from what i see this will cost the revenue a lot of money as nearly every company now making a book loss will carry back loss to get some tax back to use as cashflow. this will also effect future revenue as less pre tax paid.

i just have a feelin that the budget might restrict this, i a bit late now as all major company tax returns filed on 21/09/08-advise any one going for back claim to have it in writing to revenue for before budget day.

a company should do a current impartment review as it will make accounts more accurate.